Inflation drops to 12-month low
Inflation for September has dropped to a 12-month low of 38.1 per cent, down from the 40.1 per cent recorded in August.
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Last month’s inflation was driven by alcoholic beverages, tobacco & narcotics and food and non-alcoholic beverages, with both divisions recording an inflation rate of 49.4 per cent.
This was followed by personal care, social protection and miscellaneous services (49.2%); furnishings and household equipment (44.9%); clothing and footwear (32.5%); health (31.3%); and recreation and culture (30.1%).
The rest are housing, water and electricity (28.6%); transport (25.9%); information and communication (21.1%); restaurants and accommodation (19.5%); and education services (11.3%).
The insurance and financial services division recorded the lowest inflation rate of five per cent.
Inflation trend
Ghana’s economy has been battling with high inflation, with inflation reaching a 22-year high of 54.1 per cent in December 2022.
Inflation began a downward trend in January 2023, consistently declining to 41.2 per cent in April 2023. It, however, started inching up again in May, hitting 43.1 per cent in July.
The months of August and September saw inflation decline to 40.1 per cent and 38.1 per cent, which is the lowest inflation recorded since September 2022 when inflation was 37. per cent.
The Monetary Policy Committee of the Bank of Ghana has set an end-of-year inflation target of 29 per cent.
Food inflation
Food inflation dropped from 51.9 per cent in August to 49.4 per cent in September, with non-food inflation also dropping from 30.9 per cent to 29.3 per cent within the same period.
Inflation for locally produced items was 37.3 per cent, while that for imported items was 39.9 per cent.
Food inflation was driven by tea and related products, which recorded an inflation of 117.1 per cent.
This was followed by cocoa drinks (80%); fruit and vegetable juices (62%); coffee and coffee substitutes (54.7%); fish and other seafood (56.9%); milk, other dairy products and eggs (54%); oil and fats (50.7%); and cereals and cereal products (50.7%).
The rest are sugar, confectionery and desserts (50.6%); live animals, meat (48.8%); ready-made food (47%); vegetables, tubers, plantains, etc. (46.3 per cent); and water (35.4%).
Fruits and nuts recorded the lowest inflation of 33.5 per cent under food inflation.
Under regional inflation, the North East Region recorded the highest inflation at 54.4 per cent, with the Ashanti region recording the lowest rate at 31.2 per cent.