Inflation in Ghana remains heavily influenced by locally produced goods, with domestic supply and distribution challenges keeping prices elevated, even as overall inflation showed signs of moderation in September.
Official data from the Ghana Statistical Service (GSS) shows that local inflation fell from 12.2% in August to 10.1% in September, while imported goods’ inflation slowed to 7.4% from 9.5% in the previous month.
The weaker pace of imported price increases has been supported by a relatively stronger cedi and lower global commodity costs, providing some relief for consumers.
“The relatively stronger cedi and lower global prices could be driving the import relief whilst the weak local supply and distribution could be keeping domestic prices high,” GSS stated.
A closer look at the top 20 contributors to inflation reveals the dominance of domestic items. 19 of the twenty items on the list are locally produced, spanning both food and non-food categories. Imported vegetable oil is the only imported product in the top contributors.
Among locally produced food items, staples such as smoked herring, cooked rice, yam, ginger, river and sea fish, kenkey with fried fish, onions, beef, fufu and bread continue to exert upward pressure on household budgets.
Ginger recorded a particularly high year-on-year increase of 113%, while herring contributed 0.7 percentage points to overall inflation, underlining the significant role of essential foods.
Locally produced non-food items are also driving inflation. Electricity, charcoal, hotel accommodation, cinema and cultural services, re-sold tap water, secondary school fees, English textbooks, and refuse disposal added between 0.1 and 0.4 percentage points individually to the inflation rate. These items reflect rising costs for utilities, services, and education, extending the impact of inflation beyond food.
The data clearly shows that domestic factors, rather than imported goods, are the main drivers of inflation in Ghana. While global prices and exchange rates influence imported goods, the majority of inflationary pressure is homegrown, stemming from supply chain bottlenecks, limited local production, and distribution challenges.
For Ghanaian households, this means that the cost of living remains high, with essential goods and services, both food and non-food, leading the way. Even with a modest slowdown in September, inflation continues to reflect the enduring strength of local price pressures.
