Regular items patronised by most people in Ghana recorded the highest rates of inflation in the month of July, according to data from the Ghana Statistical Service (GSS). This shows how severely the high rate of inflation is impacting the average person. It also suggests that many people could be experiencing an inflation rate significantly higher than the 20.9% which is just a national average.
Although inflation dropped from 22.8% in June to 20.9% in July, the continuous rise in the prices of regularly consumed items remains a significant concern. These items also have higher inflation rate. This is particularly troubling for daily essentials such as tomatoes, onions, cabbage, peppers, and garden eggs, which recorded inflation rates between 51.80% and 59.5%.
According to the press release by the GSS on July’s consumer price index and inflation, the category encompassing vegetables, tubers, plantains, cooking bananas, and pulses continues to drive the inflationary trend, further exacerbating the cost of living for many households.
In June 2024, this category recorded a year-on-year average inflation rate of 42.2% and a monthly increase of 9%. Although the yearly inflation rate slightly decreased to 41.5% in July 2024, the monthly inflation rate of 4.3% is still major concern. This persistent price pressure on essential food items significantly impacts the cost of living for many households.
While inflationary pressures appear to be easing, offering some relief to consumers and businesses that have endured considerable economic strain over the past year, the rising prices of these staple items pose serious challenges for Ghanaian families especially low-income earners.
With everyday food items becoming more expensive, households face increased financial strain, which potentially would lead to a reduction in consumption and a shift in spending patterns to prioritize basic needs.
The inflation rate for imported goods remained notably lower at 15.6%, in contrast to the 23.3% rate for locally produced items. This significant gap underscores the ongoing difficulties faced by the domestic production sector.
