As the producer of gold, oil, and cocoa struggles with its greatest economic crisis in a generation, consumer inflation is rising.
With the help of utilities, food, and petrol, Ghana’s annual consumer inflation has increased to a record 21-year high of 50.3 percent in November, up from 40.4 percent the previous month.
Data from the Ghana Statistical Service, published on Wednesday, support this.
The West African country and the International Monetary Fund (IMF) reached a staff-level agreement on Tuesday for a $3 billion, three-year support package. Ghana had contacted the IMF in July to request financial assistance following street protests sparked by rising prices and economic hardship.
The producer of gold, oil, and cocoa in West Africa is seeing its worst economic downturn in a generation.
This year, the value of the local cedi against the dollar has decreased by about 40%. In November, it reached record lows before surging in anticipation of the IMF agreement.
Cuts to government spending and three increases in interest rates by the central bank have so far failed to rein in inflation.
According to Finance Minister Ken Ofori-Atta, the government has begun restructuring its domestic debt and is debating a plan for restructuring its external debt.
Housing, water, gas, and electricity were the four categories where costs increased the greatest, by a total of 79.1 percent.
Following transportation, including gasoline, came furnishings and domestic equipment in second place with 65.7 percent. The cost of food increased by 47.9 percent.
Since the cedi has strengthened and gas prices have decreased in December, there may be less inflationary pressure from the transportation sector this month.
In Accra, the nation’s capital, hundreds of people protested the skyrocketing cost of living at the beginning of last month. It was the most recent in a string of protests this year by people who are fed up with the escalating inflation, price increases, and dire economic conditions.
In a nation where, according to the World Bank, roughly a quarter of the population survives on less than $2.15 per day, rising costs have made it even more difficult for people to get by.
ORIGIN: REUTERS
