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Ghana’s inflation drops to 40.1% in August 2023

Ghana’s inflation rate declined to 40.1% in August, reaching a 10-month low to ease pressure on the central bank to keep raising borrowing costs.

This is the slowest rate of change since October.

The Government Statistician, Samuel Kobina Annim revealed that the annual inflation rate declined 43.1% in July to 40.1% in the latest data from the West African nation.

Kobina Annim revealed that the main driver of the slowdown in inflation was a decline in food prices.

Food inflation slowed to 51.9% from 55% in July, and non-food price growth was 30.9% compared with 33.8%. Prices declined 0.2% month-on-month.

Moreover, for the first time this year, inflation for imported goods registered a lower rate compared to locally produced items. Locally produced items recorded an inflation rate of 42.4%, while imported items had an inflation rate of 36.2%.

Prof Annim noted that while the decline in inflation is positive news, it was too early to determine if this represents a sustained trend.

The inflation rate serves as a gauge for the pace at which prices are escalating. A high inflation rate implies a diminishing purchasing power for individuals, as they find themselves paying more for the same goods and services.

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