Headline inflation now 19.4%; highest rate recorded in more than a decade
Headline inflation for the month of March 2022, has surged to 19.4%, the highest recorded rate in more than a decade – since August 2009.
Per the new data released by the Ghana Statistical Service (GSS), rising cost of food prices mainly accounted for the surge in the inflation rate.
On a month-on-month basis, inflation rose by 3.7 percentage points from 15.7% in February 2022 to 19.4% in March 2022.
According to the figures, food inflation recorded a rate of 22.4% in March 2022, compared to 17.4% in February 2022.
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%) and Live Animals and Meat (20.2%) recorded inflation rate, higher than the national average.
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%.
Also, local inflation shot up to 20% in March 2022, as against 17.3% of imported goods or inflation.
The Bono Ahafo region recorded the highest rate of inflation of 23.3% in the country whereas the Upper East region recorded the lowest rate of inflation of 12.5%.
The rising inflation means interest rates will continue to surge, whilst cost of credit will also go up.
However, it is expected that with the recent policy rate hike to 17% by the Bank of Ghana as a measure to counter rising inflation and return it to the target band, inflation in the coming months is expected to fall.
