Inflation rises slightly to 3.4% in April

Ghana's inflation rate rose to 3.4% in April, up from 3.2% in March, although it remains significantly lower than the 21.2% recorded in the same period last year, according to official data.

The latest Consumer Price Index figures indicate a 1.0% increase in prices between March and April, suggesting that while overall inflation remains low, monthly price pressures are starting to build.

The Government Statistician, Dr. Alhassan Iddrisu, noted that the increase was not broad-based but rather driven by a few key areas, including housing, food, and services, while many other prices remained stable or declined.

A notable shift is emerging in the source of inflation, with goods inflation slowing to 1.1% in April from 1.7% in March, while services inflation rose sharply to 9.6% from 7.2%, indicating growing cost pressures in services rather than goods.

Food inflation eased to 2.2%, while non-food inflation rose to 4.2%, reinforcing signs that price increases are moving away from food items. At the same time, locally driven inflation fell to 4.7%, while imported inflation turned positive at 0.5%, indicating a rising influence from external factors.

Officials cited charcoal prices, rent payments, and senior high school fees as the main contributors to the increase in inflation.

Despite the uptick, the overall rate remains significantly lower than last year, reflecting a continued easing of inflationary pressures, even as some costs begin to rise again.