Ghana’s inflation rises to 33.9% in August, highest in 21 years

Ghana’s year-on-year inflation rate increased to 33.9 per cent in August 2022, the highest level recorded in 21 years, according to figures released by the Ghana Statistical Service (GSS).

The latest inflation rate represents an increase of 2.2 percentage points from the 31.7 per cent recorded in July 2022, reflecting the continued rise in the cost of goods and services across the country.

On a month-on-month basis, inflation increased by 1.9 per cent between July and August 2022.

The sharp rise in inflation is expected to exert additional pressure on interest rates, potentially increasing the cost of borrowing for businesses and households.

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Housing, water, electricity, gas and other fuels recorded the highest inflation rate among the major expenditure divisions at 46.7 per cent, followed by transport at 45.7 per cent and furnishings, household equipment and routine household maintenance at 44.7 per cent.

Other significant contributors included recreation, sport and culture at 36.4 per cent, personal care, social protection and miscellaneous goods and services at 36.0 per cent, and food and non-alcoholic beverages at 34.0 per cent.

Food inflation rose to 34.4 per cent in August from 32.3 per cent in July.

Among food items, oils and fats recorded the highest inflation rate at 74.0 per cent, followed by fruits and nuts at 49.4 per cent, while fish and other seafood registered 46.4 per cent.

Non-food inflation also climbed to 33.6 per cent in August, up from 31.3 per cent the previous month.

The data further showed that imported goods continued to experience higher inflation than locally produced items for the fifth consecutive month. Inflation for imported goods stood at 35.2 per cent compared with 33.4 per cent for locally produced goods.

Regionally, the Eastern Region recorded the highest overall inflation rate at 41.0 per cent, followed by the Western Region at 40.2 per cent and Greater Accra at 39.3 per cent.

The Upper East Region recorded the lowest inflation rate at 22.8 per cent.

The Western Region registered the highest food inflation at 47.0 per cent, while the Eastern Region recorded the highest non-food inflation at 42.0 per cent.