The inflation rate in the country has seen a surge and drop at various points from the beginning of the year till date.

The current depreciation of the cedi and pricing of crude oil, led to an increase in fuel prices. This further resulted in a hike in transportation fares and food prices.

As a result of the pressures on the exchange rate, inflation was affected. Due to the depreciation of the cedi, local currency has since crossed GH¢5 to a dollar.

The hardest hit by the cedi’s depreciation are importers of all kinds of goods and services who have had to look for more cedis to ship their packages or enjoy the services into the country, including spare parts dealers. In all, the additional cost they sustain as a result of the depreciation is passed on to people who buy the products. This continues to be a burden on the necks of most businesses.

A number of factors contributed to the depreciation of the local currency to the dollar, despite political assurances.
Also capital flight which is said to be the rapid movement of large sums of money out of a country due to political or economic instability, caused the uncertainty of inflation.

Other factors such as the country’s economic condition, monetary policy and global market conditions impacted the currency on a regular basis. There is also the fact that when global demand for a country’s exports is low, the value of its currency declines. All these led to the rise and fall of inflation despite its record been in single digit.



The year-on-year inflation rate as measured by the CPI was 9.0 percent in January 2019, down by 0.4 percentage point from the 9.4 percent recorded in December 2018. This rate of inflation for January 2019 was the percentage change in the Consumer Price Index (CPI) over the twelve month period, from January 2018 to January 2019 as compared to February which rose slightly to 9.2 per cent.

With much expectation to see a fall, inflation in March rose slightly to 9.3 per cent and higher in April to 9.5 per cent.

For the first quarter of the year, the highest inflation rate was recorded in the month of April by 9.5 per cent.

The month of May saw a slight drop from 9.5 percent to 9.4 percent. After several debates by Ghanaians, the month of June saw inflation rate fall to 9.1 per cent and in July 2019, increased slightly to 9.4 per cent.

In July, the rise in the inflation level was greatly attributed to the inflation rate of non-food products, which recorded a year on year inflation rate of 10.7 percent, whiles education recorded the lowest rate of 6.4 percent”

The Ghana Statistical Service (GSS) however released the first rebased Inflation rate Tuesday September 17, since the change in the formula for calculating the rate of increase in the price levels of goods and services in the country.



According to the Ghana Statistical Service, August saw a drop in inflation. The year-on-year inflation rate as measured by the CPI was 7.8 percent in August 2019 with an index of 108.7.

Major drivers of the August inflation are said to be, alcoholic beverages, tobacco and narcotic with (12.9%).

The Food and non-alcoholic beverages group recorded a year-on-year inflation rate of 8.2 percent. Fruits and nuts (25.2%), Cereals and cereal products (10.6%), sugar, confectionery and deserts (9.0%), and ready-made food and other food products n.e.c (8.3%) were the major drivers of the food inflation.

The Non-food group recorded a year-on-year inflation rate of 7.4 percent in August 2019. Transport (10.2%) and Housing, water, electricity, gas and other fuels (9.9%) were the key drivers of the non-food inflation in August.

The highest inflation rate recorded in the month of April, rose to 9.5%. It was up by 0.2 percentage point.

Five subgroups of the food and non-alcoholic beverages group recorded inflation rates higher than the group’s average rate of 7.3 percent.

The Non-food group recorded a year-on-year inflation rate of 10.4 percent in April 2019, compared to 9.7% recorded for March 2019.

Five subgroups recorded year-on-year inflation rates higher than the group’s average rate of 10.4 percent (Figure 2).

Clothing and footwear recorded the highest inflation rate of 14.3 percent, followed by recreation and culture 14.1%, transport with 13.2%, furnishings, household equipment and routine maintenance with 12.8% miscellaneous goods and services subgroup (10.0%). Inflation was lowest in the Health sub sector with (5.9).