Inflation rate in Ghana has fallen from 40.1% in August to 38.1% in September 2023, according to the Ghana Statistical Service (GSS). Ghana Statistical Service said that there are economic losses resulting from the decrease in food and non-food items.
Food inflation decreased from 51.9 percent in August to 49.4 percent in September, and the inflation rate decreased from 30.9 percent to 29.3 percent.
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Government statistician, Professor Samuel Kobina Annim said the financial loss was a positive development. The decline in inflation is good news for consumers and businesses in Ghana. It means that the prices of goods and services are rising at a slower pace, which will help to improve purchasing power and boost economic activity.
This will provide room for the central bank to leave borrowing costs unchanged next month.
Government Statistician Samuel Kobina Annim told reporters in Accra, on Wednesday.
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For the past few years, Ghana’s inflation rate has been on a rise. Prices of goods and services keep increasing each and everyday. The most well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.
The main causes of inflation in Ghana can were due to demand-pull. As the name suggest, ‘demand-pull inflation’ is caused by developments on the demand side of the economy, while ‘cost-push inflation’ is caused by the effect of higher input costs on the supply side of the economy. Inflation can also result from ‘inflation expectations’ – that is, what households and businesses think will happen to prices in the future can influence actual prices in the future. These different causes of inflation are considered by the Central Bank when it analyses and forecasts inflation.