Food contributed 54.4 percent to inflation in Ghana

The Ghana Statistical Service (GSS) has said as food contributed 54.4 percent to year-on-year inflation, it is still the predominant driver of year-on-year inflation, but it contributed less than the previous two months.

Month-on-month Food inflation was 0.1 percent, which is less than the overall month-on-month inflation and the month-on-month food inflation in May (2.3%) and April 2020 (6.4%).

The Food and Non-Alcoholic Beverages Division recorded a year-on-year inflation rate of 13.8 percent. This is 1.3 percentage points lower than May 2020 (15.1%), but 5.9 percentage points higher than the average over the eight months preceding March 2020 (7.9%).

Within the food category, vegetables (28.8%) and fruits and nuts (17.4% ) were the sub-classes with the highest rates of inflation (see Figure 4). Month-on-month the inflation for fruits and nuts stood at 3.0 percent while vegetables recorded a negative inflation of -2.1 percent.

Non-food inflation came in at 9.2 percent, which is higher than the 8.4 percent measured in May 2020. Like last month, the division with the highest month-on-month inflation was housing, water, electricity and gas (5.4%).

Compared to earlier months, housing, water, electricity and gas (20%) also contributed more to year-on-year inflation.

This is driven by an increase in Rent prices and inflation for refuse collection

The Non-food sub-classes with the lowest inflation were fuels and lubricants for personal transport equipment (-13.5%), electricity (-35.6%) and electric appliances for personal care (-66.9%).

The national average rate recorded 11.2 percent in June.

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