Ghana’s year‑on‑year consumer inflation fell significantly in June, reaching 13.7 % from 18.4 % in May. According to data from the Ghana Statistical Service, this marks the sixth consecutive monthly decline and hits the lowest level since December 2021.
What Drove the Decline?
- Monthly deflation: Prices fell from May to June, with a ‑1.2 % decrease overall.
- Food prices easing: Food inflation dropped sharply by 6.5 percentage points, from 22.8 % to 16.3 %.
- Non-food slowdown: Non-food inflation eased by around 3 percentage points, landing at 11.4 %.
Dr. Alhassan Iddrisu, Ghana's Government Statistician, emphasized this sustained downward trend as a positive sign:
“The downward inflationary trend over the last 6 months provides some consistency and assurance of a real sustained shift in prices.”
Regional Disparities Continue
Despite the national improvement, inflation remains uneven across regions:
- Upper West Region recorded the highest inflation at 32.3 %, primarily due to surging food and utility costs.
- The Bono Region experienced the lowest inflation, at 8.4 %.
Dr. Iddrisu urged more granular analysis to help curb inflation in regional hotspots.
Why It Matters
- Household relief: A slowdown in inflation gives consumers some breathing space.
- Policy validation: The cooling prices help validate ongoing fiscal and monetary efforts.
- Economic signals: The combination of price moderation and monthly deflation signals a more predictable economic environment for businesses.
Ghana is on a clear disinflationary path, with June’s rate of 13.7 % being the lowest in over three years. While gains are positive nationally, continued attention is needed to address regional imbalances, especially in the Upper West.
