Following two months of consecutive declines, Ghana’s national year-on-year inflation rate has risen slightly to 7.8% in June 2021, after two months of consecutive drops.
This rise is 0.3 percentage points greater than the May figure of 7.5 percent.
The term “measure of the rise in the price of goods and services over time” is often used to describe inflation.
It shows that the buying power of money is being increased or decreased.
Food and transportation price rises, according to the Ghana Statistical Service, contributed the most to the total rate of inflation.
Between May and June 2021, month-on-month inflation was 1.3 percent, 0.5 percentage points higher than in May.
The June 2021 inflation rate is the first time Ghana’s CPI has increased since February of this year.
After remaining constant at 10.3% in February and March, the inflation rate fell in April and May before slightly increasing to 7.8% in June.
The current number, however, is still within the Bank of Ghana’s target inflation range of 8% plus or minus 2%.
Regional Inflation
The total year-on-year inflation rate in Ghana varied from 1.1 percent in the Western Region to 12.5 percent in the Greater Accra Region.
The region with the greatest month-on-month inflation was the Upper West (4.4 percent ).
Food inflation fell sharply in three areas this month compared to the previous month.
Western Region dropped from 0.4 percent to -1.1 percent, Volta from 9.8% to 8.0 percent, and the Upper East from 7.8% to 6.0 percent.
Food and Non-Food Inflation
Food inflation (7.3 percent) was greater than the previous month’s (5.4 percent), although it was lower than the 12-month average (10.8 percent ).
The proportion of food to inflation, on the other hand, rose from 32.3 percent to 41.8 percent. Overall, food inflation was 1.8 percent month over month, which was higher than the norm.
Fish and other seafood were the only subclasses with negative food inflation from month to month. A total of ten non-food sectors saw positive month-over-month inflation of up to 3.1 percent.
Unlike food inflation, non-food inflation decreased on a year-over-year basis this month compared to the previous month (from 9.2 percent to 8.2 percent ). In June 2021, eleven of the 13 divisions had lower or equal year-over-year inflation than the rolling 12-month average.
Housing, Water, Electricity, Gas, and Other Fuels are the non-food categories that showed the most variation from the 12-month average (11.2 percent compared to 21.1 percent ).
Inflation in the transportation sector was very high (13.4 percent) this month compared to the rolling average (8.2 percent ).
Source: CITIBUSINESS
