The Combined Consumer Price Index (CPI) gauges the fluctuation in the overall price level of goods and services that households obtain for consumption, utilizing the price level in 2021 as a benchmark, referred to as the base year, which holds an index value of 100. The Ghana Statistics Services (GSS) July 2023 reported.
This particular inflation rate for July 2023 represents the percentage shift in the Consumer Price Index (CPI) over the span of twelve months, spanning from July 2022 to July 2023. The rate of change on a monthly basis for July 2023 is 3.6 percent.
Inflation major contributors
In July 2023, the inflation rate for Food and Non-alcoholic beverages registered an annual increase of 55.0 percent (refer to Table 2). The Non-Food category, during the same period, displayed an inflation rate of 33.8 percent.
According to the distribution of inflation among categories, the report revealed that the most significant contributors were food and beverages without alcohol, constituting 54.5 percent; housing, along with water, electricity, gas, and additional fuels, comprising 11.3 percent; and transportation, contributing 6.9 percent to the overall inflation rate.
The GSS reported that food inflation, measured by a CPI of 0.427, stood at 55.0 percent, an increase from last month’s 54.2 percent. Additionally, the month-on-month food inflation was recorded at 3.8 percent.
During a press briefing held on August 9, 2023, in Accra, Professor Samuel Kobina Anim, the government Statistician of the Ghana Statistical Service (GSS), stated that food inflation, indicated by a CPI of 0.427, had reached 55.0%. This marked an increase from the previous month’s food inflation rate of 54.2%. Furthermore, the month-on-month food inflation rate was reported to be 3.8%.
He emphasized that inflation for domestically produced goods stood at 37.5%, while the inflation rate for imported items was higher at 45.7%.
In terms of non-food items, inflation, represented by a CPI of 0.573, accounted for 33.8 percent of the total. Last month’s non-food inflation was slightly lower at 33.4 percent, and the month-on-month non-food inflation reached 3.4 percent, according to the provided statement.
The West African country is currently navigating its most severe economic crisis in decades and is in the process of reorganizing its debt.
In May, there was a slight uptick in inflation compared to April, with the rate increasing from 41.2% to 54.1%. This followed a four-month period of consecutive decline from a peak of 54.1% in December, which had marked the highest inflation rate in over twenty years.
Regional Inflation Breakdown
When considering the regional distribution, the North East region displayed the most elevated inflation rate at 64.0%, while the Greater Accra region documented the least regional inflation rate at 31.8%.
The inflation rate of 43.1% recorded in Ghana for the month of July 2023 reflects the ongoing economic dynamics and challenges faced by the nation. This figure serves as a crucial indicator for policymakers, businesses, and individuals to understand the fluctuations in pricing and plan accordingly. As Ghana continues its efforts to stabilize its economy and address inflationary pressures, a comprehensive approach will be essential to ensure sustainable economic growth and stability in the future.
