The continued rise in food prices, especially in the northern part of the country, has shot overall inflation up again in July, making it the highest rate since April 2021, data from the Ghana Statistical Service (GSS) has shown.
According to the data released yesterday, July recorded inflation rate of 9 percent, up from the 7.8 percent recorded the previous month. Like June, the main driver pushing inflation upward is food prices, but this time, rather surprisingly, it came from an unlikely region, the northern part of the country.
Norther Ghana’s inflation overtakes the Greater Accra Region
Food prices in the Upper West and Northern Regions recorded inflation of 20.3 percent and 20.5 percent respectively, whereas that of the capital recorded 9.5 percent. This consequently ended a sixteen-month cycle of the Greater Accra Region persistently recording the highest overall inflation rate, as it recorded a rate of 11.7 percent, compared with 13.8 and 13.5 percent for Upper West and Northern Regions respectively.
In all, the food basket recorded inflation of 9.5 percent, up from the 7.3 percent in June, thereby, taking the basket’s contribution to national inflation to 47 percent, compared with 41.8 percent in previous month. Food items that led the pack in the month were vegetables, cereal products, live animals and meat, and ready-made food.
The non-food basket, on the other hand, recorded an inflation rate of 8.6 percent, also up from the 6.2 percent recorded in June. Also, the gap between inflation for locally produced items and imported ones continue to widen, as the former saw rate increase by 1.5 percentage points to record 9.4 percent, while, the latter saw a marginal uptick to 7.1 percent from 7 percent.
More than three-quarters of the rate of inflation recorded in July 2021 was contributed by food and non-alcoholic beverages: housing, water, electricity and gas and transport.
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