Ghana's inflation falls again, but households still feel squeeze from rent and utility bills
Ghana's inflation rate has slowed to its lowest level in years, but the country's chief statistician says the cost-of-living burden has shifted from supermarket shelves to essential services such as housing, transport and education.
Ghana's annual inflation rate fell to 4.6% in July, extending a steady decline in price growth, but households continue to face rising costs for rent, utilities, transport and other essential services.
The latest figure, released by the Ghana Statistical Service, is down from 5.3% in June and marks a sharp fall from 12.1% recorded in July last year.
Government Statistician Dr Alhassan Iddrisu said the latest data showed that inflationary pressures had shifted away from consumer goods and were now being driven largely by the cost of services.
"The pressure has moved off the market shelf and onto the monthly bill," he said.
According to the figures, services inflation stood at 8.5% in July, more than double the 3.4% recorded for goods, with non-food items accounting for more than two-thirds of overall inflation.
Housing, water, electricity and gas recorded an inflation rate of 8.3% and contributed nearly a quarter of headline inflation. Rent alone accounted for 13% of the overall increase in consumer prices.
The data suggests that while food and other goods have become relatively more stable, households are continuing to face higher costs for recurring expenses, including accommodation, school fees, transport fares and utility bills.
On a month-to-month basis, prices rose by just 0.1% between June and July, compared with 0.2% in the previous month, indicating that price increases have continued to slow.
The report also showed that locally produced goods remained the main source of inflationary pressure. Domestic products recorded annual inflation of 5.9% and accounted for almost 87% of July's inflation, while imported goods rose by 2.0%.
The figures suggest that inflation is increasingly being driven by domestic cost pressures rather than imported prices, offering further evidence that Ghana's recent disinflation has been supported by greater stability in exchange rates and international commodity prices.
Although inflation has eased considerably over the past year, economists say the continued rise in the cost of essential services means many households are yet to feel a meaningful reduction in their monthly cost of living.