Although GCB Capital has warned that simmering food price pressures represent a problem, growing inflation may start to slow down in July 2023.
In a report titled: “Policy Insights: Ghana’s June -23 Inflation Update”, it, however, said the continuous decline in non-food inflation may not be enough to bring inflation down.
“While the disinflation process could resume in July 2023, the food basket remains a significant source of price pressure”.
“We expected the waning lagged impact of the revenue and utility tariff measures and the favourable base effects to reset inflation on the downward path from July 23 and reinforce low inflation expectations, all things being equal. We flag the simmering food price pressures as a near-term upside risk to inflation, which could moderate the pace of disinflation”, it added.
Although the divisions of Alcoholic Beverages & Narcotics, Housing & Utilities, Furnishing & Household Equipment, Personal Care & Miscellaneous Goods, and continue to record inflation rates higher than the national average, the disaggregated data shows inflation is decreasing across these divisions. They continue to contribute less and less to the overall inflation print, highlighting the ongoing fall in non-food inflation.
For the second consecutive month since May 2023, year-over-year inflation increased, reaching 42.5% in June 2023.
After four straight months of deflation from the beginning of 2023, the inflation in June 2023 continued the reversal in the inflation trend, albeit at a slower rate.