The Ghana Statistical Service (GSS) has reported a slight decline in the country’s inflation rate for August 2024, with the overall inflation rate standing at 20.4%, down from the same period in August 2023.
This reduction, primarily due to a drop in food inflation, indicates that while prices are still rising compared to the previous year, the rate of increase has slowed.
Year-on-year inflation measures how much prices have increased over a 12-month period. In this case, the 20.4% inflation rate means that, on average, goods and services in August 2024 are 20.4% more expensive than they were in August 2023.
This slowdown is significant because it reflects some easing of price pressures in the economy, particularly driven by lower food prices, which tend to have a larger impact on overall inflation due to their importance in household consumption.
While the slowdown is a positive development, it still represents a high inflation rate, which can erode purchasing power, affect consumer spending, and increase the cost of living.
According to the latest Consumer Price Index (CPI) report, month-on-month inflation decreased by 0.7% between July and August 2024, marking a slight relief in price increases across the country. The report revealed that food inflation stood at 19.1% in August 2024, a drop from 21.5% from the previous month, while non-food inflation was slightly higher at 21.5% year-on-year.
The GSS report highlighted regional disparities in inflation rates, with the Upper East Region recording the highest year-on-year inflation rate at 27.8%, while the North East Region reported the lowest rate at 10.1%.
In terms of locally produced versus imported items, inflation for locally produced goods was significantly higher at 22.2%, compared to 16.1% for imported goods. Additionally, essential services such as housing, water, electricity, and gas showed notable price increases.
While the decline in food inflation has helped ease overall inflationary pressures, significant challenges remain, especially in essential sectors and certain regions.
