Ghana’s annual inflation rate accelerated for the 13th consecutive month to 29.8% in June of 2022, from 27.6% in May, breaking the upper ceiling of the central bank’s target band of 6% to 10% for ten months.
It was the highest reading since December of 2003, even after a 200bps rate hike to 19% by the central bank in May.
Prices continued to soar for both food (30.7% vs 30.1% in May) and non-food items (29.1% vs 25.7%), in part due to a weaker cedi, with prices of imported goods rising more than domestic ones for the third month and after the introduction of a highly contested 1.5% tax on electronic transactions in March.
Following protests in Ghana’s capital Accra last month over rising inflation, the Ghanaian government reversed a policy decision not to seek assistance from the IMF and began talks with the multilateral lender for as much as $1.5 billion to shore up its finances.
On a monthly basis, consumer prices rose 3%.