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Increases in food prices shoot inflation to 40.4%

Increases in food prices has been identified as one of the key drivers of Ghana’s inflation for October, according to Ghana statistical Service.

The others are housing, electricity, fuel and three other divisions contributed to pushing inflation for the month of October 2022 to 40.4 %.

The food inflation recorded the highest rate among all the components as against non-food inflation, according to the official figures.

Increase in food prices, others push October inflation to 40.4 %

The increase by food inflation indicates a jump of more than 3% from the previous rate of 37.2%.

Addressing the media, Government Statistician,  Professor Samuel Kobina Annim explained that all items in the component for calculating the rate of inflation recorded an increase.

According to the data released, housing, water, electricity, gas and other fuels recorded an inflation rate of 69.6% while furnishings, household equipment and routine household maintenance recorded 55.7%.,

Again transport recorded an inflation rate of 46.3; personal care, social protection and miscellaneous goods and services recorded 45.5%.

The trend according to the Government Statistician is largely a result of the depreciation of the cedi.

Food-price increased to 43.7% from 37.8% in September, and non-food inflation accelerated to 37.8% from 36.8% within the period.

By implication, the figure will impact the pressure on the country’s central bank to continue increasing borrowing costs, already at a five-year high.

The Bank of Ghana has hiked its main lending rate by 10 percentage points since the start of the year in attempt to hold back inflation and slow the cedi’s depreciation but that seems to have made little impact.

The cedis which has depreciated by about 57% since January 2022 has been ranked by Bloomberg as the worst-performing currency in the world among 148 currencies it tracked in a survey.

 

Source: Myxyzonline.com

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