Ghana's inflation rises in September after five-month decline

Ghana's consumer inflation rate rose in September for the first time in six months, primarily driven by an increase in food prices, according to the Ghana Statistical Service.

The year-on-year inflation rate increased to 21.5 percent from 20.4 percent in August, reversing a five-month trend of declining inflation. Month-on-month inflation also rose, reaching 2.8 percent in September, compared to a decline of -0.7 percent in August.

Speaking at a press conference on Wednesday in Accra, Government Statistician Professor Samuel Kobina Annim attributed the rise to a notable increase in food inflation, which surged by three percentage points.

"This five-month successive decrease in the rate of inflation has been reversed in the month of September, with food recording a higher rate," Prof. Annim said.

Food inflation spikes

He explained that a significant driver of the inflation increase was food inflation, which jumped from -2.2 percent month-on-month in August to 4.2 percent in September. 

This rise had a major impact on the overall inflation rate, with food prices being one of the key contributors to the reversal of the downward trend. The surge in food costs was attributed to price hikes in staple items such as cereals, vegetables, and other essential food products.

"We saw deflation for September 2024, and now we are seeing inflation of 4.2 percent. So really, the two figures you need to compare are the 2.2 deflation we saw in August 2024 relative to the inflation of 4.2 percent we are seeing in September 2024," Prof. Annim said.

"Definitely, it is a cause for concern because, as we rightly said, from a seasonality point of view, we see the influence of a bumper harvest in the months of August and September. But we need to keep in mind that it peaks in August and slows down from September onwards. Its ability to contain the market in September depends on factors such as our ability to have stored enough and the extent to which we had a significant harvest during the rainy season."

Non-food inflation remains stable

While food inflation saw a rise, non-food inflation remained relatively stable. The year-on-year non-food inflation rate was recorded at 20.9 percent in September, slightly below the food inflation rate. However, non-food inflation also showed a slight increase month-on-month, rising by 1.6 percent from August's figure of 0.7 percent.

Locally Produced vs. Imported Goods

The September inflation data revealed a disparity between locally produced goods and imported items. Inflation for domestically produced goods was 23.4 percent, while inflation for imported goods was lower at 17.0 percent.

Regional inflation rates

Inflation rates across Ghana's 16 regions showed significant variation in September. The Savannah region recorded the highest inflation rate at 36.4 percent, reflecting the acute impact of rising food prices in that area, with food inflation reaching 49.9 percent.

In contrast, the North East region had the lowest inflation rate, standing at 16.7 percent, with food inflation at 15.1 percent.