Inflation outlook remains negative as oil price spikes set to drive Ghana’s overall inflation – Analysts
Outlook for Ghana’s inflation rate is projected to remain negative given the continuous adverse impact of spikes in oil prices on the economy which is occasioned by the ongoing Russia-Ukraine war.
Continuous spikes in oil prices as the conflict continues, is expected to drive overall inflation higher in the coming months.
This is according to research analysts with SIC Insurance Company, Godwin Odoom and Obed Sackey.
Commenting on the country’s inflation rate for the month of April 2022 which currently stands at 23.6%, the research analysts are of the view that, inflation rate for both imported and local goods such as cooking oil will edge higher in the month of May due to the ongoing war as well as a ban on palm oil exports by Indonesia.
Inflation rate climbed to the highest level in more than 18 years (since January 2004) in April 2022.
The year-on-year inflation rate as measured by CPI was 23.6% in April 2022, a rise compared to the 19.4% recorded in March 2022, representing a month-on-month inflationary increase of 5.1%.
The current headline inflation is the highest since August 2009 (19.7%) and more than double the central bank’s inflation targets band of 8+/-2%.
Food inflation for the Month of March settled at 26.6% which is higher than March’s food inflation of 22.4%.
Food inflation’s contribution to total inflation, however, decreased from 51.4% in March 2022 to 50.0% in April 2022.
Overall Month-on Month food inflation was 5.8%. This is the first time in 29 months that inflation for imported items exceeded domestic inflation.
Inflation for imported goods was 24.7% while inflation for local goods was 23.0%
Transport including fuel recorded the highest inflation rate of 33.5%, followed by Housing with an inflation rate of 28.5%.
At the regional level, the Central Region recorded the highest inflation rate of 26.7% while the Upper East Region recorded the lowest inflation rate of 18.4%.
Central Region recorded the highest month-on-month inflation of 8.8%.
