Prices rose at a slower pace for the fifth straight month in December, with the national inflation rate dropping to 23.2%, from 26.4% in November, according to the Ghana Statistical Service.
This means that compared to December 2022, overall prices were 23.2% higher in December 2023.
Prices also increased slightly from November to December 2023, with a month-on-month inflation rate of 1.2%.
Details of the slowdown:
Government Statistician Samuel Anim explained that the December 2023 Consumer Price Index (CPI) was 200.6, compared to 162.8 in December 2022.
Food inflation slowed to 28.7% from 32.2% in November, with food prices rising slightly (1.3%) month-on-month.
Non-food inflation also softened, reaching 18.7% from 21.7% in November. Prices for non-food items rose 1.0% month-on-month.
Imported goods saw steeper price increases (29.1%) compared to locally produced items (23.8%).
Regional variations:
The Eastern Region had the highest inflation rate at 35.2%, while the Greater Accra Region had the lowest at 16.0%.
What this means:
Ghana’s inflation is heading in the right direction after reaching a peak of 54.1% in December 2022. However, prices are still rising significantly compared to a year ago, impacting the cost of living for Ghanaians.
The slowdown is likely due to a combination of factors, including tighter monetary policy and base-effect comparisons with high price growth in late 2022.