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Ghana’s inflation rate remains a pressing concern, with the latest figures revealing a persistent upward trend.
According to Government Statistician Professor Samuel Kobina Enim, the country’s inflation rate continues to be driven by food inflation, which shows no signs of abating.
Despite a slight slowdown in the rate of change, the overall picture remains bleak. With prices of goods and services continuing to rise, Ghanaians are feeling the pinch, and the government is under pressure to act.
The latest inflation figures have been released, and the news is not encouraging. Government Statistician Professor Samuel Kobina Enim has revealed that the rate of inflation for July 2024 stands at 20.9%.
“Highlights for July 2024 rate of inflation in the month of June Ghana went up by 20.9% between July 2023 and July 2024. While this rate of inflation indicates a 1.9 percentage point lower than the rate that was recorded in June 2024 of 22.8%, it signifies that it’s only the rate of change that has slowed down over the same period last year and the same period this year.”
As Professor Enim delved deeper into the data, a clearer picture emerged of the inflation landscape in Ghana. Despite the slight slowdown, prices of goods and services continue to rise, putting pressure on households and businesses alike.
The year-on-year and month-on-month increases paint a stark picture of an economy struggling to contain inflation. The question on everyone’s lips is: what next?
“Prices of goods and services continue to increase both on a year-on-year basis and on a month-on-month basis. On a year-on-year basis, general prices of goods and services went up by 20.9%, and on a month-on-month basis, general prices of goods and services went up by 2.1%.”
Professor Enim highlighted the disparity between food and non-food inflation, revealing a worrying gap. As the country struggles to contain inflation, the focus is increasingly on the food sector.
“From a disaggregated point of view, we continue to see the dominance of food inflation leading with a rate of inflation of 21.5% relative to non-food inflation of 20.5%.”
The distinction between locally produced and imported items also reveals some interesting insights. Professor Enim noted a significant difference in the inflation rates of these two categories, with locally produced items leading the way.
This raises important questions about the country’s economic structure and its vulnerability to external shocks. As the government seeks to address inflation, understanding these dynamics is crucial.
“From a locally produced item and an imported item perspective, we see the dominance of locally produced items with a 7.7 percentage point drop, with locally produced items recording a rate of inflation of 23.3% relative to 15.6% for inflation on imported items.”
As the inflation rate continues to affect the livelihoods of Ghanaians, the government is under pressure to implement effective measures to contain the surge.
With the latest figures revealing a persistent trend, it remains to be seen whether the authorities can take decisive action to stabilize the economy and provide relief to the struggling population.
For now, the wait continues, as Ghana grapples with the challenges of high inflation.
