Ghana’s annual inflation rate accelerated for the tenth consecutive month to 19.4% in March of 2022, from 15.7% in February.
That was the highest rate since August of 2009, breaching the Bank of Ghana’s target band of 6% to 10% for the seventh month. Food-price growth quickened to 22.4% from 17.4% in February, driven by cooking oil, water and cereal products. Non-food inflation also climbed to 17% from 14.5%, on account of prices of transportation (27.6%), of which fuels; and housing & utilities (21.4%).
On a monthly basis, consumer prices surged by 4%, the most since January of 2016. The strong acceleration in consumer prices comes after the Bank of Ghana lifted its key rate by a massive 250 bps to 17% on March 21st, saying already high inflation was being worsened by the Russia-Ukraine war.
The government also announced a flurry of spending cuts to tackle inflation, reduce the deficit and restore a depreciating local currency.