Economy

Inflation falls again to 10.4% in Sept. 2020

Inflation fell marginally by 0.1% in September 2020 to record a rate of 10.4%.

According to figures from the Ghana Statistical Service, the slight drop was influenced by reduction in some prices of food stuffs.

Month-on-month inflation between August 2020 and September 2020 was however -0.2%. Last month, the month-on-month inflation was also negative (- 0.4%).

On average month-on-month inflation between April to July 2020 was 0.9% and in the six months prior to COVID19 month-on-month inflation rate was 0.7%.

The GSS said only two of the 13 Divisions had higher than average inflation rates. They were Housing, Water, Electricity and Gas (20.3%) and Food and Non-Alcoholic Beverages (11.2%).

Whilst Food and Non-Alcoholic Beverages Division recorded a year-on-year inflation rate of 11.2%, Non-Food inflation stood at 9.8%

Within the Food Division, Vegetables (18.9%) was the Subclass with the highest rates of inflation. This is lower than in the previous months.

Health, Restaurants and Accommodation Services and Information and Communication, were three divisions that recorded higher month-on-month inflation rates between August and September 2020 than on average during the months April to July 2020 and before COVID-19.

Imported and local inflation

The inflation of imported goods was 5.1%, while the inflation of local goods was 12.3% on average. Month-on-month inflation for imported goods was however 0.4%, while month-on-month inflation for local goods was -0.5%.

The main contributor to negative local inflation was the inflation of locally produced foods.

Regional inflation

For the regions, the Greater Accra region continued to record the highest rate of inflation of 14.2%, whilst the Upper West recorded the lowest inflation rate of 1.3%.

The GSS said most regions recorded a lower year-on-year inflation this month compared to previous months.