The Ghana Statistical Service (GSS) announced on Wednesday that the country’s inflation rate dropped to 20.9 percent in July, 1.9 percentage points lower than the 22.8 percent recorded a month earlier.
“The slower rate of inflation in July was due to a significant decline in food inflation during the month under review,” said Samuel Annim, the government statistician at the GSS, during a regular monthly briefing.
Compared to June, food inflation declined by 2.5 percentage points to 21.5 percent in July, while non-food inflation decreased by 1.1 percentage points to 20.5 percent in July, he said.
Meanwhile, inflation for locally produced and imported items stood at 23.3 percent and 15.6 percent, respectively, the statistician added.
“The significant decline of inflation rate we are seeing now is also a result of the base effect, due to the higher inflation rate recorded during the same period last year compared with the relatively lower inflation rates over the same period this year,” Annim added.
Ghana’s inflation rate increased to 54.1 percent by December 2022, due to the country’s economic crisis. The country secured a $3 billion U.S. dollar loan from the International Monetary Fund in May last year, hoping to revive its economy.