Although Ghana’s inflation rate has somewhat decreased to 13.7% in June, bringing it closer to the government’s end-of-year objective, the top five price pressure points fueling inflation are still rent, power, and, surprisingly, yam, charcoal, and rubbish disposal.
Even though garbage disposal only makes up 0.5% of the inflation basket, it has a startling 130.9% annual price increase, making it one of the main drivers of the overall rate.
In the meanwhile, persistent disinflation offers a significant chance to move away from reactive pricing controls and toward more structural solutions, according to Government Statistician Dr. Alhassan Iddrisu.
“With inflation on locally produced goods declining faster than imported ones, businesses can reduce exposure to global supply shocks by increasing local sourcing, especially for food, packaging, and logistics inputs,” he says, calling on companies to reconsider their sourcing patterns.
Additionally, he counseled businesses to adapt more quickly to shifting consumer preferences. “Given the disinflation and even month-on-month deflation, businesses could practice strategic pricing, not sharp increases, as consumers are more price-sensitive.”
GSS also suggests adjustments to household purchase patterns in response to the escalating cost of food, with staples like yam continuing to rank among the main causes of inflation:
“Households should lean into bulk purchases of staples, buy local produce where possible, and favor in-season vegetables, cereals, and proteins, which are experiencing sharper price drops.”
As regional disparities in inflation persist, Dr. Iddrisu emphasized that economic policy must become more targeted:
“Tailor social protection and economic policy by Region as blanket policies will not be effective given wide regional disparities in inflation.”