Ghana has a long history of high inflation rates, popularly attributed to supply not keeping up with demand. However, Ghana's current single digit inflation can be attributed to a number of factors including the reduction in global inflation rate and a stable exchange rate for a period of time.

This single-digit inflation has spurred the discussion as to whether it is a true reflection of the situation on the ground. This article throws some light on the measurement of inflation and explains why there should be a dichotomy between the statistical measurement of inflation and the cost of living.