Ghana’s inflation rate eased to 4.6 per cent in July, marking the first monthly decline in four months and signalling a slowdown in the pace of price increases across the economy.
The latest figures released by the Ghana Statistical Service (GSS) show headline inflation fell from 5.3 per cent in June to 4.6 per cent in July, ending three consecutive months of rising inflation.
The latest decline offers some relief to households and businesses, with economists saying slower inflation could improve purchasing power and support business planning if the trend continues.
Food Prices Drive Decline
The slowdown was largely driven by lower food inflation, which declined from 3.9 per cent in June to 3.1 per cent in July.
Non-food inflation also eased slightly, falling from 6.3 per cent to 6.1 per cent over the same period.
According to the Ghana Statistical Service, food and non-alcoholic beverages remained the largest contributor to headline inflation, accounting for 32.4 per cent of overall consumer price movements.
Services Inflation Also Falls
The report showed that inflation within the services sector declined to 8.5 per cent from 9.4 per cent recorded in June.
Locally produced goods recorded inflation of 5.9 per cent, while imported goods stood at 2.0 per cent, indicating relatively lower price pressures on imported products.
Regional Differences Persist
Price movements continued to vary across the country.
The North East Region recorded the highest inflation rate at 10.8 per cent, while the Bono East Region registered the lowest at -3.8 per cent, reflecting differing economic conditions across the regions.
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Positive Outlook
Government Statistician Dr. Alhassan Iddrisu said the latest figures point to moderating inflationary pressures after recent increases.
The latest slowdown is expected to support consumer confidence and business planning while reinforcing expectations that inflation could remain within the Bank of Ghana’s target range if current economic conditions are sustained.
