Inflation in Ghana reached a 21-year high in August, increasing to 33.9% from 31.7% in July 2022.
The last time inflation hit 33.9% was in August 2001. In that year, Ghana decided to opt for enhanced debt relief in order to stabilize the economy.
At that time, the economy was characterised by rapid exchange rate depreciation, high inflation as well as high debt service payments, similar challenges facing the economy in 2022.
Ghana is currently before the IMF for US$3 billion to help the country navigate through the hostile economic crisis in which it finds itself as a result of the adverse effects of the deadly coronavirus disease (COVID-19) pandemic and the ongoing conflict between Russia and Ukraine.
Inflation figures
A report by the Ghana Statistical Service read by the Government Statistician, Professor Samuel Kobina Annim today in Accra indicated that month-on-month inflation between July 2022 and August 2022 was 1.9%.
He said the inflation rate for August was mainly driven by transport and utilities.
The inflation rate was driven by Housing, Water, Electricity, Gas and Other Fuels (46.7%); Transport (45.7%); Furnishings, Household Equipment and Routine Household Maintenance (44.7%); Recreation, Sport and Culture (36.4%); Personal Care, Social Protection and Miscellaneous Goods and Services (36.0%) and Food and Non-Alcoholic Beverages (34.4%). All six divisions recorded inflation rates higher than the national average.
Food inflation increased to 34.4% from 32.3% in July 2022 while non-food inflation also rose to 33.6% in August 2022, from 31.3% the previous month.
Similarly, inflation for locally produced items was 34.4%, whereas inflation for imported items was 35.2%.