Rising cost of food prices pushed Ghana’s inflation rate in the month of March 2022 to 19.4%, the highest since August 2009.
According to the Ghana Statistical Service, Foodstuffs such as Oil and Fats (28.2%), Water (27.1%), Cereal Products (25.0%), Vegetables (23.8%), Fish and Other Seafood (23.7%), Fruits and Nuts (22.1%), Soft Drinks (20.5%), Live Animals, and Meat (20.2%) recorded inflation rate, higher than the national average.
According to the figures, food inflation recorded a rate of 22.4% in March 2022, compared to 17.4% in February 2022.
Non-food inflation however recorded a rate of 17.0% in March 2021, from 14.5% recorded in February 2022.
Transport including fuel recorded the highest inflation rate of 27.6%, followed by Housing with an inflation rate of 21.4%.
Month-on-month inflation between February 2022 and March 2022 was 4.0%. However, on a month-on-month basis, food inflation exceeded non-food inflation by 0.8 percentage points.
In addition, local inflation shot up to 20% in March 2022, as against 17.3% for imported goods or inflation.
The rising inflation means interest rates will continue to surge, whilst cost of credit will also go up.
Last month, the central bank raised interest rates in an attempt to control rampant price rises, which analysts say threaten to dive one of West Africa’s largest economies into crisis.
The government has also announced a package of spending cuts to try to reduce its budget deficit and prop up the local currency.
About three weeks ago, the government announced a reduction of salaries of appointees by between 20% and 30%, according to reports by local media.
Additional sources • Ghana Statistical Service