Inflation rate inches up to 7.8% for June 2021

The year-on-year inflation rate was 7.8% in June 2021, which is less than one percentage point higher than the 7.5% recorded in May 2021.

Month-on month inflation between May and June 2021 was 1.3% (0.5 percentage point higher than what was recorded in May).

Housing, water, electricity, gas (14.2% down from 19.9% last month) recorded the highest inflation.

This month’s food inflation (7.3%) is higher than last month (5.4%) but lower than the average of the previous 12 months (10.8%).

However, food contribution to inflation increased from 32.3% to 41.8%.

READ ALSO: Inflation Declines To 7.5% In May 2021

Overall month-on-month food inflation was 1.8%, which is above the average month-on-month inflation.

Fish and other seafood was the only subclass that recorded a negative month-on-month food inflation.

Ten non-food divisions recorded positive month-on-month inflation of max 3.1%.

Unlike food inflation, non-food year-on-year inflation on average went down this month compared to last month (from 9.2% to 8.2%).

Out of the 13 divisions, ten had lower or equal year-on-year inflation in June 2021 than the rolling average over the last 12 months.

Housing, water, electricity, gas and other fuels is the non-food division that recorded the biggest difference compared to the 12-month average (11.2% compared to 21.1%).

Transport recorded a relatively high inflation (13.4%) this month compared to the rolling average (8.2%).

Regional breakdown

At the regional level, the overall year-on-year inflation ranged from 1.1% in Western Region to 12.5% in Greater Accra Region. Upper West Region recorded the highest month-on-month inflation (4.4%).

Three regions saw a stark decline in food inflation as compared to last month. Western Region went from 0.4% to -1.1%, Volta from 9.8% to 8.0%, and Upper East from 7.8% to 6.0%.

In five regions, the month-on-month transport inflation was above 1%.

Upper West Region recorded the highest overall inflation (4.4%) and Western and Central Regions the lowest (0.1%).

Imported and local inflation  

The inflation for imported goods was 7.0% (down from 7.3% last month), while the inflation for locally produced items was also 7.9% on average (up from the 7.3% recorded last month).

Month-on-month inflation for imported goods was 0.4% and for locally produced goods 1.6%.