Consumer price inflation for July 2020 inched up to 11.4 percent, the highest recorded in more two years, from 11.2 percent in June 2020, data from the Ghana Statistical Services (GSS) has shown.
This represents an 0.2 percentage points increase, which was largely attributed to the non-food group. However this is the lowest month on month increase in consumer price inflation since the arrival of the COVID 19 pandemic began pushing inflation above the target band of between six and 10 percent in the second quarter of this year.
The non-food group recorded a year-on-year inflation rate of 9.7 percent in July 2020 which is 0.5 percentage points higher than the 9.2 percent recorded for June 2020. Housing, Water, Electricity and Gas were the key drivers of the non-food inflation in July, at 20.3 percent.
The food and non-alcoholic beverages inflation rate recorded a year-on-year inflation rate for June of 13.7 percent, 0.1 percent lower than the 13.8 percent recorded for June 2020. Three subgroups recorded inflation rates higher than the group’s average rate of 13.7 percent. These are Vegetables at 28.2 percent, Fish and other Seafood at 16.1 percent, as well as Fruits and Nuts at 13.0 percent.
This translates to food being the predominant driver of year-on-year inflation in July. As food contributed 53.0 percent to year-on- year inflation, it is still the predominant driver of year-on-year inflation, but it contributed less than in the previous three months.
The Consumer Price Index (CPI) measures the change over time in the general price level of goods and services that households acquire for the purpose of consumption.
At the regional level, the year-on-year inflation rate ranged from 4.2 percent in the Volta Region to 16.2 percent in the Greater Accra Region.
Greater Accra and Western Region and Eastern recorded inflation rates above the national average, at 16.2 percent, 12.7 percent and 12.0 percent respectively.
Volta Region had the lowest year-on-year inflation rate.