July: Inflation drops for the fourth consecutive time to 20.9%

Ghana’s consumer inflation continued its downward trend in July, reaching 20.9 per cent year-on-year, marking the fourth consecutive month of decline.

This represents a 2.1 percentage point decrease from June’s 23.0 per cent, signalling a gradual easing of the economic pressures that peaked throughout 2023.

In July, food inflation stood at 21.5 per cent, while non-food inflation was slightly lower at 20.5 per cent.

Notably, the inflation rate for imported items was recorded at 15.6 per cent, significantly lower than the 23.3 per cent observed for locally produced goods.

The steady decline in inflation, which began in April 2024, offers some relief to consumers and businesses after a period of heightened economic strain.

Over the past four months, the consistent drop in inflation has underscored a cooling in price growth, bringing a sense of optimism to the market.

On a month-to-month basis, the pace of inflation growth also slowed, with a 2.1 per cent increase from June to July 2024, down from 3.2 per cent in May.

This two-month trend suggests that inflationary pressures are beginning to ease, further reinforcing the positive outlook.

Year-on-year data shows a significant reduction in food inflation, now approximately 2.4 times lower than in August 2023.

However, food prices remain slightly higher than those of non-food items, reflecting ongoing challenges in the food sector.

Additionally, a notable disparity exists between the inflation rates for locally produced and imported goods. Locally produced goods experienced a higher inflation rate of 23.3 per cent, compared to 15.6 per cent for imported items, highlighting the unique pressures faced by domestic producers.

Government Statistician, Professor Samuel Kobina Annim, attributed the overall decline in inflation to reductions in both food and non-food categories, emphasizing the broader impact of these decreases on the economy.