The Ghana Statistical Service (GSS) on Wednesday announced a further drop in the country’s inflation rate to 18.4 percent in May, 2.8 percentage points lower than that of the previous month.
“This is the fifth consecutive year-on-year decline in inflation and the lowest since Feb. 2022, signaling that price stability is returning to our economy,” Government Statistician at the GSS Alhassan Iddrisu said during the regular monthly briefing.
Iddrisu attributed the slower rate of inflation in May to declining food and non-food inflation, with a greater impact from non-food inflation.
He added that compared to April, food inflation declined 2.2 percentage points to 22.8 percent in May, while non-food inflation decreased 3.4 percentage points to 14.4 percent.
According to him, amid these price developments, inflation for locally produced and imported items stood at 19.2 percent and 16.4 percent, respectively.
In May, the monetary policy committee of the central bank maintained its benchmark policy rate at 28 percent to sustain the declining inflation trajectory.
The West African exporter of cocoa, gold, and crude oil has been implementing economic reforms since May 2023, backed by a 3-billion-dollar loan from the IMF to tackle multiple protracted economic challenges, including currency depreciation, high inflation, and ballooning public sector debts.