Ghana: July Inflation Drops to Single Digit

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Ghana’s year-on-year rate at which the general price level of goods and services increases has dropped from 10 percent in June to 9.6 percent in July, according to data released by Ghana Statistical Service (GSS) on Wednesday.

The GSS said the 0.4 percentage point reduction was as a result of a decline in the general price of items in the non-food component of the inflation basket.

“The reduction is due to the fact non-food group inflation fell by about 0.5 percentage points from 11.2 to 10.7 percent, and this is responsible for the fall in inflation that we are observing. For most of the non-food subgroups, inflation rate declined; and the main cause is the base rate effect.

“Food went up marginally – that is, from 7.3 to 7.4 percent – and that didn’t have much effect on the trend we are observing. This is because the food basket’s weight is lighter than that of the non-food, and so changes in the non-food will have a bigger effect on inflation rate than the changes in food,” acting Government Statistician Baah Wadieh noted in Accra.

Drivers of the non-food group include clothing and footwear, which recorded inflation rate of 15.4 percent; transport 15 percent, recreation and culture 13.4 percent, furnishing and household equipment 12.5 percent, and miscellaneous 12 percent.

The food and non-alcoholic beverage group recorded a year-on-year inflation rate of 7.4 percent, a 0.1 percentage point increase over the rate recorded in June 2018.

Drivers of this group are coffee, tea and cocoa, which recorded 11.3 percent; fruits 9.7 percent, meat and meat products 8.6 percent; mineral water, soft drinks 8.4 percent; vegetables 8.4 percent, and food products 7.7 percent. This means that six subgroups recorded rates higher than the basket’s average of 7.4 percent.

Inflation for imported items recorded 11.5 percent, the same as that recorded last month. This was 2.7 percentage points higher than that of locally-produced items, which recorded 8.8 percent.

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