Databank projects 25 year high inflation rate of 43% for end-2022
Asset management firm, Databank, has projected a 25 year high headline inflation rate for the country by end-2022.
Projections made by the research arm of the investment firm, Databank Research, puts end of year inflation at 43%, the highest since 1997.
The end-year inflation rate projected by Databank is 15 percentage points (15%) higher than government’s revised end-year inflation rate of 28%.
According to Databank Research, the end-year inflation rate will primarily be driven by high food and energy (fuel) prices.
Recent data published by the Ghana Statistical Service (GSS), puts the country’s headline inflation rate at 37.2% in September.
Inflation rose by 3.3% on month-on-month basis to hit 37.2% in September 2022.
Headline inflation in the previous month – August 2022 – was 33.9%.
According to Government Statistician, Professor Samuel Annim, five groups recorded inflation rates higher than the national average in September.
They were Housing, Water, Electricity, Gas and Other fuels (68.8%); Furnishings, Household Equipment and Routine Household Maintenance (51.1%); Transport (48.6%); Personal Care, Social Protection and Miscellaneous Goods and Services (42.6%) as well as Food and Non-Alcoholic Beverages (37.8%).
The implementation of the utility tariff in September 2022 influenced the surge in inflation in Housing, Water, Electricity and other fuels group.
Eastern region (47.1%) maintained its lead as the region with the highest inflation. It was followed by the Greater Accra and Ashanti regions.
The Upper West region recorded the least rate of inflation of (22.9%).
Growth in the country’s headline inflation as projected by Databank, will result in harsher living conditions for Ghanaians, a possible hike in the policy rate of the BoG in its next MPC press briefing and in turn higher interest rates on loans to households and businesses.
