Ghana’s inflation rate drops to 4.6% as food costs ease

Ghana's annual inflation rate fell to 4.6% in July from 5.3% in June, driven by slower increases in food prices, according to the country's statistics service. It was the first monthly decline in the inflation rate since March.

Food and non-alcoholic beverage prices rose 3.1% year-over-year, while non-food inflation stood at 6.1%. Monthly inflation was 0.1% in July, indicating prices held largely steady from the prior month. Regional rates varied sharply, from a 3.8% decline in one region to a 10.8% increase in another.

Government Statistician Alhassan Iddrisu said domestic factors, including transport, energy and local production costs, remain the primary drivers of inflation. The statistics service estimated more than 86% of the country's inflation stems from domestically produced goods and services.

The July reading marks a sharp improvement from 12.1% a year earlier. Ghana's central bank held its policy rate steady for a second consecutive meeting in July, saying it is targeting an inflation range of 6% to 10% over the medium term.

Read the full story at Graphic Online.