According to latest data from the Ghana Statistical Service, Ghana’s year-on-year inflation rate for January 2023 has dropped marginally to 53.6%, from the 54.1% recorded in December 2022. This marks the first time in the last 19 months that there has been a reversal of the rate of increase for the year-on-year inflation.
The figure represents a 0.5 percentage drop relative to the rate that was recorded for December 2022. While food inflation inched up to 61.0% in January 2023, from 59.7% recorded in December 2022, non-food inflation declined to 47.9% in January 2023, from 49.9% recorded in December 2022.
The data also revealed that inflation for locally produced items was 50.0%, while inflation for imported items was 62.5%. On a regional level, the Eastern region recorded the highest year-on-year inflation of 66.2%, while Greater Accra followed with an inflation of 65%.
Additionally, inflation for transport fell for the first time in several months due to the reduction in fuel prices during the period. Prices of non-food items also declined during the period. However, five divisions registered inflation higher than the national average. These include Furnishings, household equipment (71.7%); Housing, water, electricity, gas and other (71.1%); Transport (68.8%); Personal care, social protection and miscellaneous services (63.1%) and Food and non-alcoholic beverages (61.0%).
Ghana’s inflation rate has been a major concern for the government, businesses, and the public in recent times. The drop in the inflation rate may bring some relief to Ghanaians, who have been grappling with high prices of goods and services. The government has been implementing various measures to address the issue, including the reduction of fuel prices and the introduction of new policies to improve the economy. The drop in inflation is a positive development that could lead to increased confidence in the economy and more investments in the country.