March 2023 inflation falls sharply to 45%

Inflation for March 2023 fall sharply to 45%, influenced by some deflation of items in both the Food and Non-Alcoholic Beverages group and Non-food inflation.

The drop is significant due to the level of increase recorded few months ago, after it declined to 52.8 % in February 2023.

However, this may not translate to ease in lending rates anytime soon, as inflation still remains high.

According to the data from the GSS, Food inflation fell by 8.3% in March 2023 to 50.8%. Also, Non-food inflation fell to 40.6% in March 2023, from 47.9% in February 2023.

Five divisions recorded inflation rates higher than the national average. They are Furnishings, Household Equipment (67.4%); Housing, Water, Electricity, Gas and other Fuel (64.7%); Personal Care, Social Protection and Miscellaneous Services (53.7%); Transport (52.0%) and Food and Non-Alcoholic Beverages (50.8%).

According to Government Statistician, Professor Samuel Kobina Annim, the sharp decline in inflation corresponds to the ongoing downward trend of inflation.

“Only few sub-groups recorded inflation during the period. The Western North region recorded the highest rate of inflation whilst the Volta region was the least,” he said.

Prof. Annim explained further that the decline in the rate shows that general prices have increased, but at a slow rate compared to the same period in 2022.

 “One must take note that this is a slowdown in rate of inflation which means that inflation went up by 45%”, he said.

Answering the question on the projected trend, Professor Annim hinted that the GSS will not make any projections to the inflation rate, but is hopeful the trend may be sustained.

He is confident that the current performance of the local currency could have an indirect role in the declining rate of inflation.

Regional inflation

The Western North region recorded the highest inflation of 67.3%, whilst the Volta region recorded the least inflation of 25.6%.