Ghana’s overall year-on-year inflation has changed direction for the first time in six months, marginally increasing to 21.5% in September, according to the latest Consumer Price Index data published by the Ghana Statistical Service (GSS).
This means that on average, Ghanaians in the month of September 2024 experienced a general price increase in goods and services at a rate of 21.5% higher than the same period last year [September 2023].
This marginal increase to 21.5% in September 2024 is from 20.4% in August 2024.
Prior to this increase, the year-on-year inflation was on a downward trajectory for five consecutive months which led to a 200 basis points policy rate cut by the Monetary Policy Committee of the Bank of Ghana last month.
The month-on-month inflation followed a similar trend recording its first increase in four months. The monthly inflation of September 2024 significantly increase to 2.8% after a deflation of 0.7% in August 2024.
This implies that Ghanaians in the month of September averagely experienced a 2.8% increase in the general prices of goods and services higher than the month of August 2024.
The surge in inflation for September was partly driven by food inflation which increased to 22.1% from 19.1% in August 2024. On the other hand, non-food inflation instead recorded a decline. The rate reduced to 20.9 % from 21.5% in August 2024.
On the imported and locally produced front, inflation on imported goods rose to 17.0% in September, up from 16.1% in August, while inflation on locally produced items increased to 23.4%, compared to 22.2% in August 2024.
Specific drivers which recorded an inflation rate above the overall inflation of 21.5% include Restaurants and accommodation services registering an inflation rate of 27.9%, while alcoholic beverages, tobacco, and narcotics followed closely at 27.6%.
The housing, water, electricity, gas, and other fuel categories recorded 26.4%, with education services at 23.7%, health at 22.3%, and food and non-alcoholic beverages at 22.1%.
Some analysts are showing concern that with the sudden change in the direction of inflation and the crucial 2024 December elections approaching, the government needs to prioritise maintaining stable prices to ensure that gains made in the economic recovery path are not eroded by inflationary pressures.
