Ghana’s annual inflation rate accelerated for the 17th straight month to 40.4% in October of 2022, up from 37.2% in September. It was the highest reading since July of 2001 and well above the top of the central bank’s target band of 6% to 10%, amid a strong depreciation of the cedi during the month.
The recent slide in the domestic currency has been driven by uncertainty over Finance Minister Ken Ofori-Atta’s future, after the opposition filed a motion in parliament to dismiss him because of the deepening economic crisis.
The Ghanaian government has been in talks with the International Monetary Fund for a $3 billion loan bailout aimed to address Ghana’s macroeconomic and structural woes.
Inflation for imported items (43.7%) was higher than for locally produced ones (39.1%). Prices accelerated for both food (43.7% vs 37.8% in September) and non-food items (37.8% vs 36.8%).
On a monthly basis, consumer prices rose by 2.7%, faster than a 2% increase in the previous month.