Inflation drops from 23.1% to 22.8% in June 2024

Ghana's annual inflation rate witnessed another slowdown, dropping from 23.1 percent in May to 22.8 percent in June of this year.

This also represents a month-on-month inflation rate of 2.9 percent between May and June 2024.

According to latest figures released by the Ghana Statistical Service, consumer prices experienced their slowest pace since March 2022.

For example, food inflation, a major driver, rose to 24.0 percent in June this year from 22.6 percent in May, representing a month-on-month inflation rate of 5.1 percent.

Non-food inflation, however, declined to 21.6 percent in June from 23.6 percent in May.

Additionally, inflation for locally produced items reached 25.0 percent, while the figure for imported items was 17.5 percent.

These latest figures signal progress towards the disinflation path the government has been targeting since the beginning of this year.

This could potentially lead to the Bank of Ghana announcing a cut in the interest rate, which remains unchanged at 29 percent after it held its 118th meeting in May this year.

The Monetary Policy Committee of the Bank of Ghana is expected to announce its next decision on July 29, 2024.

MA/NOQ