Headline inflation has witnessed a substantial contraction recording a notable decline from 35.2% in October 2023 to 26.4% in November 2023, as per data released by the Ghana Statistical Service.
This marks a 8.8 percentage point decline in headline inflation on a month-on-month basis.
Food Inflation Takes Center Stage
The driving force behind this marked decline was prominently attributed to food prices, with food inflation plummeting by 12.6% to 32.2% in November 2023. The month-on-month rate of food inflation registered a modest 0.8%, indicating a noteworthy easing of pricing pressures in essential commodities.
Non-Food Inflation Trends
Concurrently, non-food inflation also witnessed a reduction, easing to 21.7% from 27.7% in October 2023. The month-on-month rate of non-food inflation stood at 2.2%, reflecting a broader moderation in inflationary dynamics.
Locally Produced vs. Imported Items
Inflation for locally produced items recorded a rate of 26.1%, while that of imported items stood at 27.1%, elucidating nuanced distinctions in pricing trends between domestically produced and imported goods.
High Inflationary Sectors
Five divisions surpassed the national average, with notable sectors including Alcoholic Beverages, Tobacco and Narcotics (39.0%); Personal Care, Social Protection and Miscellaneous Goods and Services (35.4%); Food and Non-Alcoholic Beverages (32.2%); Furnishings, Household Equipment and Routine Household Maintenance (32.2%); and Restaurants and Accommodation Services (27.1%).
Sub-Class Inflation Variations
Of the 15 Sub-Classes in food inflation, eight recorded rates above the overall food inflation of 32.2%. Noteworthy categories included Tea and related products (78.8%); Cocoa drinks (73.9%); Coffee and coffee substitutes (39.3%); and Fruit and vegetables (39.1%).
Regional Disparities
The Western region reported the highest inflation at 39.8%, while the Greater Accra region displayed the least inflation at 19.8%, underscoring regional variations in economic dynamics.