Rate of increase in prices of goods and services drops as Inflation falls to 7.5% in May 2021

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Inflation eased considerably by 1% to 7.5% in May 2021, signaling a likely drop in cost of credit, all things being equal.

The fall in inflation means that the rate at which prices of some goods and services increasing has slowed down.

Food inflation particularly fruit and vegetables as well as soft drinks slow down considerably in May 2021, despite seven sub-classes recording inflation higher than the overall food inflation of 5.4%.

According to the figures by the Ghana Statistical Services, Food inflation was 5.4% in May 2021, lower than 6.5% recorded in April 2021. Non-food Inflation was 9.2%, also lower than 10.2% recorded the previous month.

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Inflation for locally produced items was 7.3%, whilst inflation for imported items was 7.3%.

The contribution of transport to inflation further increased from 11.8% in April 2021 to 16.5% in May 2021.

In general, non-food inflation seems less volatile compared to food inflation.

For the first time in one and half years, inflation for imported goods reached parity with locally produced items

Regional inflation

The Greater Accra region still registered the highest rate of inflation of 12.3% in May.

It was followed by the Northern and Bono Ahafo regions with inflation rates of 9% and 7.4% respectively.

On the other hand, Western and Eastern regions recorded the lowest inflation rate of 2.6 percent each respectively.

 Ghana Statistical Service, Professor Samuel Kobina Annim
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