Ghana experiences record inflation as food costs soar

In December 2022, Ghana’s inflation rate reached a record 54.1% due to rising costs for food, housing, and transportation.

Government statistician Samuel Kobina Annim told reporters on Wednesday in Accra, the nation’s capital, that the inflation rate as of November 2022 was 50.3%.

Bloomberg says that the eurozone’s inflation rate of 54.1% was the seventh highest in the world out of 120 countries.

Since September 2021, the rate of inflation has been higher than the 10% cap set by the central bank.

With the new rate, import inflation was 61.9%, food prices soared by 59.7%, and transportation expenses rose by 71.4%.

Before the date was announced, the national currency of the nation, the cedi, lost as much as 6.1% versus the dollar.

An economist with GCB Capital Ltd. in Accra, Courage Boti, responded to the rate by saying, “I think the inflation peak is near.” The policy rate will be retained given the prospect for a declining inflation rate.

Because economic growth is already weak and fourth-quarter GDP is expected to be even lower, the central bank may be more inclined to support growth and be more accommodating when inflation is seen as heading in the right direction.