Year-on-year inflation rose to a four-month high in July 2023 as a result of an increase in food prices, data from the Ghana Statistical Service has revealed.
The annual inflation inched up marginally to 43.1%, from 42.5% in June 2023.
The increase in inflation may compel the Bank of Ghana to hike the monetary policy rate at its next meeting in September 2023.
According to research firm, IC Securities, the rising inflation will not subside without a further monetary policy tightening by the Bank of Ghana.
It pointed out that its baseline forecasts show a slightly higher elevated profile in the year ahead.
According to figures from the Ghana Statistical Service, the rising Food and Non-Alcoholic Beverages Inflation (55.0%) pushed the overall inflation up. This is against the 54.2% recorded in June 2023.
The month-on-month food inflation was, however, 3.8%.
Non-Food Inflation stood at 38.3% in July 2023, from 33.4 % recorded in June 2023. The month-on-month non-food inflation was, however, 3.4%
Inflation for locally produced items was 37.5%, whilst inflation for imported items was 45.7%.
Five divisions recorded inflation higher than the national average. They were Personal Care, Social Protections and Miscellaneous Goods and Services (60.5%); Furnishing, Household Equipment, and Routine Household Maintenance (56.9%); Food and Non-Alcoholic Beverages (55.0%); Alcoholic Beverages, Tobacco, and Narcotics (48.7%) and ((48.7%); and Housing, Water, Electricity, Gas and Other Fuels (47.4%).
Also, 10 food divisions recorded inflation higher than overall food inflation
They were Tea and Related Products (150.0%); Cocoa Drinks (86.5%); Fruits and Vegetable Juices (66.7%); Cereals and Cereal Products (64.2%); Sugar, Confectionary and Desserts (62.7%); Oil and Fats (59.5%); Milk and Other Diary Products and Eggs (58.3%); Coffee and Coffee Substitutes (58.2%); Fish and Other Sea Foods (57.7%) and Live Animals, Meat and Other Parts of Slaughtered Land Animals (55.2%).
Greater Accra recorded lowest inflation of 31.8%
For the regions, the North East Region recorded the highest inflation of 64.0%, while the Greater Accra Region recorded the lowest inflation of 31.8%.
The region with the highest food inflation was North East (88.6%). Ashanti region, however, registered the lowest food inflation of 43.7%.
For Non-food inflation, the Greater Accra region recorded the lowest of 23.8%, whereas the Upper East region recorded the highest of 51.2%.