The inflation rate drifted towards the upper bound of the central bank’s medium-term inflation target band of 8.0% ± 2.0% as inflation figures in the traditionally lower-inflation zones of the northern regions continue to climb steadily. August’s inflation rate rose for the third consecutive time to 9.7%, up from 9.0% in July largely driven by the contributions of food and non-alcoholic beverage items. On a month-on-month basis, the inflation rate climbed for the tenth consecutive time giving an indication of the persistence of upward price pressures.
Data released by the Ghana Statistical Service showed that food and non-alcoholic beverages was the dominant driver for the higher inflation rate in August mainly on the back of price increases in staples such as cereals, vegetables, tubers and plantains. When combined with housing and transport, their contribution to the national figures jumps to at least 80%.
Food inflation rose from 9.5% in July to 10.9%, its highest since February, 2021. Cocoa drinks recorded the highest inflation rate within this category as a sharp rise in prices of cocoa drinks led to a month-on-month inflation rate of 12.0% in August alone.
Inflation on non-food and alcoholic beverages came in 8.7% in August after building on last month’s 40 basis points jump. Housing and utilities at 15.2% and transport at 12.8% recorded rates higher than the group’s average inflation rate.
Across the regions, the inflation rate ranged from 3.0% in the Eastern region to 14.6% in the Northern region. Inflation on locally produced goods rose for the third consecutive time to 10.3%, up from 9.4% in July whilst that on imported items rose from 7.1% to 8.1% in August.
As the Monetary Policy Committee meets later in the month to review the performance of the economy and to position the policy rate to guide the government’s policy actions going forward, it is expected that the Committee will take cognizance of the persistent upward price pressures on consumer goods.