Ghana’s Inflation Rate Drops to 23.1% in May

Ghana Statistical Service (GSS) on Wednesday, June 12, reported that the year-on-year inflation rate fell to 23.1% in May, down from 25.0% in April. This marks the second consecutive month of decline and the lowest rate in 26 months.

Food inflation contributed significantly to the overall decline, dropping to 22.6% in May from 26.8% in April. Government Statistician Professor Samuel Kobina Annim says the year-on-year inflation rate decreased by 1.9 percentage points in May.

At a news conference in Accra, Prof. Annim explained that prices of goods and services increased by 23.1% between May 2023 and May 2024. The Consumer Price Index (CPI), which measures changes in the cost of a fixed basket of goods and services, reflects this price rise.

“This indicates a slowdown in inflation, with May’s rate being the lowest in the last 26 months,” he said. He noted a steady decline in inflation from 25.8% in March to 25.0% in April, and further down to 23.1% in May.

Breaking down the figures, Prof. Annim pointed out that food inflation was at 22.6% while non-food inflation stood at 23.6%. This is the second consecutive drop in food inflation, which fell from 29.6% in March to 26.8% in April, and further to 22.6% in May.

May’s food inflation rate of 22.6% is the lowest in 13 months, while non-food inflation has increased for the third month in a row. Locally produced items had an inflation rate of 24.7%, compared to 19.6% for imported items.

The CPI, used to calculate inflation, is based on prices, quantities, and expenditure weights collected monthly from 57 markets across all 16 regions of Ghana, covering about 47,800 items.