The Ghana Statistical Service (GSS) has released the inflation rate for May 2024, which shows a significant decline to 23.1%. This represents a decrease of 1.95 percentage points from the inflation rate recorded in April 2024, which was 25%.
According to the GSS, the decline in inflation was driven by a decrease in food inflation, which fell by 4.2% to 22.6%. The food subgroup that recorded the highest contribution to the 22.6% food inflation was vegetables, tubers, and plantains, with a contribution of 3.6% percentage points.
Ready-made food and fish and other sea food were the next highest contributors to food inflation, the GSS added. Non-food inflation, on the other hand, increased to 23.6% in May 2024, according to the GSS.
The decline in inflation is a positive development for the economy, as it indicates a slowdown in the rate of price increases. The GSS inflation data is closely watched by policymakers, businesses, and individuals, as it has implications for monetary policy, investment decisions, and consumer behavior.
The decrease in inflation may also have implications for interest rates, as the Bank of Ghana may consider easing monetary policy to support economic growth. The decline in inflation is a welcome development, and it will be important to monitor future inflation data to see if this trend continues.
