Ghana saw inflation easing slightly to 20.4% in August, marking a small decline from 20.9% in July.
However, beneath this general figure, certain sectors experienced intense inflationary pressures, notably Restaurants and Accommodation Services, which recorded a staggering 29.5% year-on-year inflation—first highest inflation rates after Housing, Water, Electricity, Gas and Other Fuels across all sectors.
This sharp rise highlights a growing concern over the cost of leisure and hospitality services in the country.
Month-on-month inflation increased from 1.6% in July to 2.1%, reflecting a 31.25% rise in the rate of inflation in Restaurants and Accommodation Services between the two months.
This uptick indicates that while overall inflation had been easing earlier, the pace of monthly price increases surged in August, driven by higher costs in sectors such as housing, utilities, and services like restaurants and accommodation.
The inflation surge in Restaurants and Accommodation Services can be attributed to several factors. Primarily, rising operational costs, including energy prices and raw materials, have forced businesses in the hospitality sector to raise prices significantly.
The sector is now burdened with numerous taxes that were previously included in menu prices. However, due to new Ghana Revenue Authority compliance regulations, these taxes are now calculated and added separately to the displayed cost of food or services, resulting in price increases of up to 25% at restaurants and hotels.
The sector is also saddled with many taxes which were previously subsumed in the cost shown in the menu. However following the new compliance regulation by the Ghana Revenue Authority, these new taxes are calculated and added on to the displayed cost of food or service, leading to sometimes up to 25% increase in the overall cost of food or service at the restaurant or hotel.
