Ghana’s inflation rate rose further in the month of July 2022 after the headline rate surged to 31.7% from 29.8% recorded in the previous month. Recall that the country’s inflation rate touched a 19-month-high in June, as a result of a surge in transportation costs, high cost of living and the sharp increase in prices of goods and services.
It was the highest reading since December of 2003, surpassing market forecasts of 30.8%. Prices quickened further for both food (32.3% vs 30.7% in June) and non-food products (31.3% vs 29.1%), on the back of a weakening cedi, with prices of imported goods outpacing domestic ones for the fourth month. On a monthly basis, consumer prices advanced by 3.1%, up slightly from a 3% rise in the previous month, the GSS stated.
The hike in transport costs is due to the fluctuating global energy prices, which has seen the price of gasoline hit record highs, as crude oil prices remain elevated. Also, the higher cost of household equipment and maintenance, and utilities like electricity, gas, and water contributed to the uptick in the inflation numbers.
The West African nation has witnessed a sharp rise in its year-on-year inflation rate, despite averaging 12% in the last quarter of 2021. However, the inflation rate averaged 27% in the second quarter of 2022 and is set upward with a 31.7% rate in the review month.