Inflation for May pegegd at 23.1%; drops from 25% - GSS

Inflation for May 2024 has decreased to 23.1%, down from 25.0% in April, marking a 1.9 percentage point reduction, according to the Ghana Statistical Service (GSS).

This decline is attributed primarily to a drop in food inflation, which fell to 22.6% from 26.8% in April.

Conversely, non-food inflation experienced a slight increase, rising to 23.6% in May from 23.5% in April.

Inflation for locally produced items and imported items also decreased to 24.7% and 19.6%, respectively.

Government Statistician, Professor Samuel Kobina Annim, highlighted the importance of addressing transportation costs, which saw a month-on-month inflation rate of 10.5%, compared to the overall month-on-month rate of 3.2%.

Speaking to journalists in Accra, Professor Annim emphasised that policymakers should shift their focus from food inflation to transportation, given its broader impact on other sectors.

“In this case, what I want the media and policymakers to engage is not food inflation but transport, where we are seeing month-on-month transport inflation of 10.5% when overall month-on-month is 3.2%. We all appreciate how transport affects other items in the basket for competition, Professor Annim stated.

He urged for strategies to slow down the consistent but gradual increases in food prices, aiming for potential reductions in the future.

This latest data from the GSS provides valuable insights for policymakers, indicating areas that require attention to maintain and further the positive trend in inflation reduction.

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