Inflation Rate Drops Further To 7.5% In May; Lowest In Over A Year

Ghana has, for the second consecutive time this year, recorded the lowest year-on-year inflation rate.

Inflation Rate Drops Further To 7.5% In May; Lowest In Over A Year

Ghana has, for the second consecutive time this year, recorded the lowest year-on-year inflation rate.

The inflation rate recorded for May 2021 was 7.5 percent, which is one percentage point lower than the 8.5 percent recorded in April this year.

The figure falls within the government’s medium-term inflation target of 8.02 percent and stands as the lowest recorded in more than two years.

Month-on-month inflation between April and May 2021 was 0.8 percent, which is 0.7 percentage points lower than what was recorded last month.

 

 Background

The Ghana Statistical Service, in 2019, introduced a rebased Consumer Price Index as part of continuous efforts to improve the quality of its data.

With the new series, the year-on-year inflation rate as measured by the CPI was 7.8 percent in August 2019.

A month after the index was rebased, Ghana saw an inflation rate of 7.6 percent; the lowest inflation rate recorded in Ghana at the time.

The national year-on-year inflation rate was 7.5 percent in May 2021, and it was also the lowest recorded since the emergence of the COVID-19 pandemic in March 2020.