Inflation continues upward trajectory as it ends November at 12.2%
Headline inflation for the month of November 2021, was 12.2 percent.
This is per new data provided by the Ghana Statistical Service (GSS) on the macroeconomic indicator.
Compared to last month’s headline inflation rate – October 2021 – of 11 percent, the recorded 12.2 percent inflation rate for the month of November marks a 1.2 percentage points increment in inflation on a month-on-month basis.
Recorded inflation rate for the month of October, exceeded the central bank’s target band for a second straight month, making it the highest inflation recorded since May 2020.
Annual inflation accelerated to 11% in October from 10.6% in September.
The recorded increment in headline inflation comes on the back of price pressures arising from sustained high fuel prices and transport costs, a weak local currency [cedi], and an uptick in food inflation.
Inflation to remain on elevated path – Fitch
Ghana’s inflation rate is projected to remain on an elevated path by credit rating agency, Fitch Ratings.
According to the agency, the country’s headline inflation will be driven by upward price pressures arising from sustained high fuel prices and transport costs, a weak local currency [cedi], and an uptick in food inflation.
Adding that, it expects the cedi to weaken to GHS 6.1/$ by the end of 2021.
BoG Governor agrees with Fitch Ratings ‘elevated inflation’ outlook
Meanwhile, Governor of the Bank of Ghana (BoG), Dr Ernest Addison has said underlying inflation pressures are elevated highlighting risks to inflation outlook for 2022.
According to the Governor, uncertainties surrounding food prices and petroleum price adjustments are likely to exert inflationary pressures in inflation outlook for next year.
Dr Addison’s assertion confirms a position already stated by credit rating agency, Fitch Ratings, which noted in its December 2021 Africa Monitor Report that the country’s inflation remains on an elevated path.
Speaking at the 2021 Annual Bankers Week Dinner of the Chartered Institute of Bankers, Dr Addison noted, “The economic outlook for 2022 is positive although there are some potential risks which should be closely monitored. In particular, the uncertainties surrounding food prices, petroleum price adjustments, and the potential second round effects of these are likely to exert inflationary pressures in the outlook.”
