Ghana’s rate of price increases slowed further in July, with annual inflation falling to 4.6%, from 5.3% in June and 12.1% a year earlier.
The decline marks a sharp slowdown in the pace of price increases over the past year. But the latest figures from the Ghana Statistical Service (GSS) also show substantial increases in the prices of several goods and services that households regularly buy.
Ginger recorded the largest year-on-year price increase in July, rising 111.3%. Mango prices increased 89.0%, while shrimps rose 67.1%.
Bananas increased 45.9%, fresh tomatoes 43.4%, fresh coconut 39.2%, avocado pear 32.9%, palm fruits 32.7% and cashew 29.1%. Parking space and other services recorded a 28.3% increase.
Nine of the 10 items with the highest price increases were food or agricultural products.
The list of the biggest contributors to the overall inflation rate, however, extends beyond food.
Rent was the largest contributor at 13.0%, followed by fresh tomatoes at 11.9% and ginger at 11.8%. Cooked rice contributed 8.9%, river fish 6.2% and charcoal 6.1%.
Secondary school fees and bus and trotro fares each contributed 5.4%, while hotel accommodation contributed 3.8% and electricity 3.7%.
Only ginger and fresh tomatoes appeared in both the top 10 list of items with the highest price increases and the top 10 contributors to overall inflation.
The difference between the two lists reflects the way the headline rate is calculated. An item can record a large percentage increase without being one of the biggest contributors to overall inflation, depending on its weight in household spending.
Ginger, for example, recorded the largest price increase at 111.3%, while rent made the largest contribution to the overall rate at 13.0%.
Meanwhile, fresh tomatoes recorded a 43.4% increase and contributed 11.9% to overall inflation.
Food inflation fell to 3.1% in July, from 3.9% in June, while non-food inflation declined to 6.1% from 6.3%.
Services remained the fastest-rising category, with inflation at 8.5%, although that was down from 9.4% in June.
The July data therefore show a significant slowdown in the overall rate of price increases alongside continued increases in selected food items, housing, transport, education and utilities.
At 4.6%, the headline rate indicates that prices are rising much more slowly than they were a year ago. The individual price movements in the GSS basket show, however, that the pace remains uneven across the goods and services households buy.
