Ghana’s inflation Surges To 42.2%

Ghana’s inflation has for the first time since the beginning of 2023 seen an increase.

The Ghana Statistical Service (GSS) in a statement said the inflation rate has jumped from 41.2% in April to 42.2% in May

This follows the Bank of Ghana’s decision to maintain the Monetary Policy Rate after the 112th Monetary Policy Committee Meeting held in May.

Food inflation increased to 51.8%, while non-food inflation fell to 34.6% in May.

Meanwhile, inflation for locally produced items was 36.2% with imported items recording a 43.8% inflation rate.

The rise in May’s inflation was driven by furnishings and household equipment; housing, water, electricity, gas, and other fuel; personal care, societal protection, miscellaneous services; and food and alcoholic beverages.

These items recorded inflation rates higher than the national average, the GSS noted.

The Western North Region maintained its stint as the region with the highest inflation for the third consecutive time at 662.5% while the Ashanti region recorded the lowest at 31%.

The Western North region also maintained the record as the region with the highest food inflation rate at 77.1%.

Ghana had experienced a decline in the inflation rate for four consecutive months, as the Central Bank continued to raise the Monetary Policy Rate (MPR).

In May, the BoG maintained MPR at 29.5% when inflation was 41.2%.

At the time, it said it had in place policies that will continue to cool off inflation.

“The Bank of Ghana has signed the Memorandum of Understanding on zero financing to the budget to eliminate fiscal dominance and allow for faster ease in inflation towards the target band. These policies should provide the much-needed anchor to reinforce the disinflation process and reset the economy on the path of recovery,” the BoG said.