Ghana’s inflation rate has dropped for the fourth straight month according to the country’s Statistics Service earlier today. In its consumer price index report, the Government Statistician, Alhassan Iddrisu noted that inflation fell from 22.4% in March to 21.2% in April.
The latest inflation decline has been driven largely by moderation in the price of food and non food commodities in the country. It signals a major shift in the country’s economic dynamics given how it had endured high cost of living of persistently high inflation.
While the price of food has slightly moderated, it remains a bit high, making it one of the driving factors behind the double digit inflation Ghana is currently facing. “Food inflation remains the biggest price driver,” Iddrisu said, adding that it remains very high.
In March, Central Bank Governor Johnson Asiama stated that a stringent monetary policy was essential to reduce consumer inflation in the West African nation known for its gold, oil, and cocoa production.
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He also revealed an unexpected increase in interest rates, noting that the effects on inflation would be evaluated prior to the upcoming rate meeting in May.
Additionally, Finance Minister Cassiel Ato Forson mentioned in his budget address in March that significant reductions in spending would enable Ghana to lower inflation to 11.9% by the year’s end.
