Inflation hit 11% pushing above Bank of Ghana’s target as Non-food prices surge…
October inflation rate exceeded the central bank’s target band for a second straight month, making it the highest inflation recorded since May 2020.
With the rise, inflation puts pressure on the Bank of Ghana’s monetary policy committee which is scheduled to meet later this month to consider hiking interest rates.
Annual inflation accelerated to 11% in October from 10.6% in September, Government Statistician Samuel Kobina Annim reported at a news conference Wednesday.
The Government Statistician said the Month-on-Month inflation between September 2021 and October 2021 was 0.6 per cent with food inflation for October 2021, less than non-food inflation which climbed 1.6 percentage points.
He stated that transport, which included fuel, recorded the highest variation of 5.2 percentage points between October 2021 of 14.9 per cent and the percentage 12-month average of 9.7 per cent.
“Contribution of food inflation to overall inflation continues to slow down by 3.7 percentage points,” he pointed out.
Inflation for locally produced items continued to dominate imported items but with a reduced margin from 3.4 to 3.0 percentage points.
Inflation for imported goods was 8.8 per cent, higher than the 8.1 per cent recorded in September, while the inflation for locally produced items was 11.8 per cent, up from the 11.5 per cent recorded in September.
Oil prices, continue to soar this year as it has hit the highest point since 2014, and a shortage of fertilizer that is impacting food production, are likely to fan inflation rise in the country.
