Ghana’s inflation rate slowed to 4.6 percent in July, marking the first decline after three consecutive monthly increases and signaling renewed relief for households and businesses facing rising costs.
Data released by the Ghana Statistical Service (GSS) show headline inflation fell by 0.7 percentage points, down from 5.3 percent in June. The moderation suggests that while prices continue to rise, they are doing so at a slower pace, reinforcing expectations that inflation could remain within the Bank of Ghana’s medium‑term target band of 8 ± 2 percent if current macroeconomic conditions hold.
The easing was broad‑based, driven by slower increases across food and non‑food categories. Food inflation dropped to 3.1 percent in July from 3.9 percent in June, while non‑food inflation edged down to 6.1 percent from 6.3 percent. Services inflation also moderated, falling to 8.5 percent compared with 9.4 percent in June.
Locally produced goods recorded inflation of 5.9 percent, significantly higher than the 2.0 percent for imported items, reflecting reduced external price pressures amid a stable cedi and softer global inflation trends.
Government Statistician Dr. Alhassan Iddrisu noted that food and non‑alcoholic beverages remained the single largest contributor to headline inflation, accounting for 32.4 percent of overall price movements across the 13 divisions of the Consumer Price Index.
Regional disparities were pronounced. The North East Region posted the highest inflation rate at 10.8 percent, while Bono East registered the lowest at ‑3.8 percent, indicating that average prices there were lower than during the same period last year.
Analysts say the latest figures add to signs of improving macroeconomic stability. Sustained moderation in inflation, alongside exchange rate stability and prudent fiscal management, could strengthen the case for further monetary policy easing in the months ahead, potentially lowering borrowing costs and supporting growth.
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