Ghana's consumer inflation has continued its downward trend, falling to 20.9% year-on-year in July, marking the fourth consecutive month of decline.

This represents a 2.1 percentage point decrease from June’s 23.0%, indicating a gradual relief from the economic pressures that escalated throughout 2023.

In July, food inflation was reported at 21.5%, slightly above the 20.5% recorded for non-food inflation.

Interestingly, the inflation rate for imported goods was 15.6%, significantly lower than the 23.3% observed for locally produced items.

The ongoing decline in inflation, which started in March 2024 at 25.8%, signals a steady moderation in price increases.

Over the past five months, this consistent reduction in inflation has offered some relief to consumers and businesses after a period of intense economic strain.

On a month-to-month basis, the growth of inflation also slowed, with a 2.1% increase from June to July 2024, down from 3.2% in May. This two-month trend indicates that inflationary pressures are beginning to subside.

Year-on-year data reveals a significant reduction in food inflation, now about 2.4 times lower than in August 2023, although food prices remain slightly higher than non-food items.

Moreover, there is a clear difference between the inflation rates for locally produced and imported goods, with locally produced items experiencing a higher rate of 23.3% compared to 15.6% for imported ones.

Government Statistician, Professor Samuel Kobina Annim, attributed the overall decline in inflation to decreases in both food and non-food categories, underscoring the broader economic impact of these reductions.