Inflation dips 300bps to reach 40.1% end-August 2023
In August 2023, Ghana’s inflationary landscape exhibited subtle shifts, as the year-on-year inflation rate moderated from 43.1% in July to 40.1%. This marginal decline, reported by the Ghana Statistical Service, hinted at a tentative stabilization in price levels across the nation.
Notably, the dynamics within the food and non-food sectors added depth to this narrative. Food inflation, which had previously been on an upward trajectory, experienced a slight reprieve, descending to 51.9% in August, compared to the prior month’s 55.0%. This development offered a glimmer of hope for consumers grappling with surging food prices.
Concurrently, non-food inflation receded by 2.9%, settling at 30.9% in August 2023. This marked slowdown outside the realm of sustenance provided respite amid the broader economic landscape.
A noteworthy milestone emerged in the realm of imported versus domestically produced goods. For the first time in the year, inflation for imported products (36.2%) dipped below that of locally produced items (42.4%). This pivot in relative price movements underscored nuances in the Ghanaian economy’s supply chain dynamics and import dependencies.
Further scrutiny of the data unveiled select divisions and sub-categories that surpassed the national inflation average. Notable among these were Personal Care, Social Protection, and Miscellaneous Goods and Services, which saw an inflation rate of 56.3%, and Furnishings, Household Equipment, and Routine Household Maintenance, registering at 52.6%. These figures hinted at distinct pressures faced by consumers in these segments.
Within the domain of food inflation, a deeper dive into sub-categories illuminated the variances within this critical sector. Remarkably, 10 out of 15 sub-classes reported inflation rates exceeding the overall food inflation of 51.9%. Of particular concern were Tea and Related Products, which saw prices surge by a staggering 140.2%, while Cocoa Drinks and Fruit and Vegetable Juices recorded inflation rates of 84.4% and 66.7%, respectively. These pockets of sharp inflation served as a microcosm of the challenges facing Ghana’s food market.
Ghana’s inflation landscape in August 2023 carried nuanced insights. While there was a marginal reprieve in the overall inflation rate, disparities between food and non-food sectors, as well as between imported and locally produced goods, emerged as critical themes. These trends will undoubtedly shape economic policy discussions and strategies in the months ahead.
