Ghana Inflation Rate Declines Suprisinly To 40.1% In August: Figure Lowest Since October 2022

• Ghana's inflation rate dropped to 40.1% in August 2023 according to the Ghana Statistical Service
• Government Statistician Samuel Kobina Annim noted that this was the lowest figure in 10 months
• Food inflation also decreased to 51.9% in August 2023 from 55.0% in July 2023 according to the service's data

Ghana’s inflation rate surprised many by declining in August 2023 to the lowest figure in 10 months.

The Annual inflation dropped to 40.1% from 43.1% in July, according to the Ghana Statistical Service boss Samuel Kobina Annim.

Food inflation also decreased to 51.9% in August, from 55.0% in July.

Inflation for imported products registered a rate lower than locally produced items for the first time this year.

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Anim noted that the decline in inflation was welcome news, but added that it was too early to establish a trend.

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 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 over the course of 2023 so far.

Source: YEN.com.gh