Inflation falls to near four-year low in July

Latest reading: Inflation eased to 12.1% in July from June’s 13.7%. This deceleration was quicker than markets had expected and marked the weakest rate since October 2021. Looking at the details of the release, cost growth for food plus housing and utilities moderated in July. Price pressures have been dampened by the cedi’s appreciation vs the U.S. dollar since the start of this year, itself a result of rising prices for gold and cocoa—of which Ghana is the world’s largest and second-largest producer, respectively. Accordingly, the trend pointed down, as annual average inflation fell to 20.3% in July (June: 21.1%). Lastly, consumer prices rose 0.68% in July over the previous month, contrasting the 1.20% fall seen in June.

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