Some regularly consumed vegetables and fruits saw their prices drop in July compared to June of this year, the latest inflation data by the Ghana Statistical Service (GSS) indicate. This confirms assertion by some members of public that prices are gradually coming down for some items.
Ghana’s inflation rate has seen a notable decline in July 2024, decreasing to 20.9% from 22.8% in June, according to the GSS. This marks a significant easing in inflationary pressures, providing a measure of relief to consumers grappling with rising living costs.
The monthly inflation rate, which reflects price changes between June and July, was recorded at 2.1%, a fall from 2.9% between May and June. This figure indicates a slower pace of price increases compared to earlier months, suggesting that the economy may be stabilizing after a prolonged period of high inflation.
A closer look at the data however suggests that some items saw their prices drop in July compared to the previous month. But these reduced prices are still very high compared to July of 2023.
Among the most significant developments in this report, is the drop in prices of a number of daily consumed vegetables and fruits. Notably, garden eggs experienced a slight decrease of 0.9%, down from a higher price point in June. Fresh tomatoes also saw a reduction of 1%, providing some respite to consumers who rely on these staples for their meals, while cabbage came down by 3%.
More strikingly, the price of okro (fresh) fell dramatically by a staggering 17.3% in July, indicating a significant reversal in price trends. This substantial decline suggests that the market may have adjusted to previous supply constraints, leading to a surplus that has driven prices down. Similarly, carrots, dropped by 9.3%, while green pepper saw an 8.3% decrease in price, with large onions going down by 5.3%. Fruits such as orange and mango also saw a 10.5% and 7.9% drop respectively.
The overall food inflation rate for July stood at 21.5%, while non-food inflation was slightly lower at 20.5%. The decline in prices for essential vegetables and fruits is particularly significant, as these items are staples in Ghanaian households. The easing of inflation in these categories is expected to provide some relief to consumers who have been facing escalating food prices, though not as much as it was a year ago.
Despite the positive trends in certain food categories, economic analysts caution that inflation remains well above the Bank of Ghana’s target range of 6% to 10%. The central bank’s Monetary Policy Committee has maintained the policy rate at 29%, aiming to anchor inflation expectations amid ongoing economic challenges.
