Ghana’s annual inflation rate has dropped to its lowest level in 28 months, reaching 20.9 percent in July 2024 and marking the fourth consecutive month of decline.
Government Statistician, Professor Samuel Kobina Annim, announced the figures in Accra on Wednesday, noting that the July inflation rate is the slowest since March 2022. The latest data reveals a continued cooling of price growth, down from June’s 23.0% and a significant reduction from the 25.8 percent observed in March 2024.
Food inflation in July was recorded at 21.5 percent, while non-food inflation slightly trailed at 20.5 percent. Notably, the inflation rate for imported goods was considerably lower at 15.6 percent, compared to the 23.3 percent for locally produced items. This disparity highlights the ongoing challenges within the domestic production sector.
Month-on-month, inflation growth slowed further, with prices rising by 2.1 percent from June to July, a decline from the 3.2 percent increase seen in May. This trend suggests that inflationary pressures may be stabilizing, providing some relief to consumers and businesses that have faced significant economic strain over the past year.
Professor Annim attributed the overall decline to decreases in both food and non-food categories, underscoring the broad impact these reductions have had on the economy.
As inflation continues to ease, there is growing speculation that Ghana’s central bank may consider lowering interest rates to further stimulate economic activity.
Source: Graphiconline