Government Statistician, Alhassan Iddrisu, has warned that Ghana could see higher inflation in June following the government's decision to reduce fuel price support introduced earlier this year.

According to him, the fuel relief programme helped keep transport costs stable and prevented inflation from rising more sharply in recent months, despite increases in the prices of some food items.

Speaking at the release of the May 2026 Consumer Price Index (CPI) report on Wednesday, June 3, 2026, he explained that the temporary suspension of some fuel-related taxes and margins from April 16 helped keep pump prices relatively low.

Government misses revenue and borrowing targets despite stability claims – Amin Adam

However, he noted that the government's decision to partially restore some of these charges from May 16 could start affecting prices across the economy.

"The partial withdrawal of the suspension effective May 16, 2026, will likely affect June inflation numbers," he said.

The government introduced the fuel support programme in April to cushion consumers and businesses from rising petroleum prices. Under the policy, the state absorbed GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol.

The diesel support was reduced to GH¢1.07 per litre in May, a move that could increase transport and distribution costs

Iddrisu also said lower transport costs have so far helped reduced increases in food prices and kept overall inflation under control.

Although inflation remains far lower than the 18.4 percent recorded in May 2025, it increased from 3.4 percent in April to 3.7 percent in May, raising concerns that the recent downward trend in inflation may be slowing.

He added that consumers often experience inflation differently, with some households facing higher food prices while benefiting from lower fuel and transport costs.

ANAS/SA

Finance Minister details framework for new IMF PCI engagement