Ghana’s Inflation Rate Drops To Lowest Figure In 12 Months: “Pressure Eases On Pockets Of Ghanaians”

• Ghana’s inflation rate fell to its lowest figure in a year after a decline from 40.1% to 38.1% for September 2023
• Ghana Statistical Service boss Professor Samuel Kobina said food and non-food inflation dropped.
• The month-on-month inflation between August 2023 and September 2023 was pegged at 1.9%

Ghana’s inflation rate fell to a 12-month low in September after a decline from 40.1% to 38.1%

Data from the Ghana Statistical Service indicates that food and non-food inflation dropped.

Food inflation dropped to 49.4% from the 51.9% recorded in August 2023, while non-food inflation declined to 29.3% from 30.9%.

Inflation for locally produced items was 37.3%, while that of imported products was 39.9%.

The month-on-month inflation between August 2023 and September 2023 was pegged at 1.9%, according to a briefing by the government Statistician, Professor Samuel Kobina Annim.

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Annim also attributed the drop in inflation to the tight monetary policy measures by the Bank of Ghana.

The earlier decline in inflation for August 2023 was also considered a surprise by observers.

High food inflation in Ghana

At some point in 2022, the World Bank ranked Ghana as the country with the highest food prices in Africa.

The World Bank, in its October 2022 Africa Pulse report, said Ghana’s high food prices were due to the Russian-Ukrainian war.

The war was noted to have led to hikes in food prices for countries that rely on grain from Russia and Ukraine.

Drivers Of Food Inflation

The figure for food inflation increased when viewed month-on-month on a basis.

The main drivers are Oilband Fats at 67%, seafood at 42.9%, and water at 42%.

The GSS data also added that all of the above items recorded inflation rates higher than the national average of 33.9%.

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Ghanaians' sweating over fuel prices

Fuel prices are known to drive inflation in Ghana because of their effect on food prices and transport

YEN.com.gh has reported on how Ghanaians have complained about the record increases in fuel prices.

Fuel prices reached as high as GH¢20 in 2022 but have dropped to about GH¢12 throughout 2023 so far.

Source: YEN.com.gh