Inflation accelerates to 37.2% in September, highest in 21 years

Consumer inflation has risen from 33.9% in August to 37.2% in September reaching 21 year high.

Government Statistician, Prof. Samuel Kobina Annim, said the month of September 2022, the general price level was 37.2% higher than in September 2021.

The Month-on-month inflation between August 2022 and September 2022 was two per cent.

Eastern Region has highest inflation of 47.1%

The Eastern Region had the highest regional inflation rate of 47.1%, while the Upper East Region had the lowest regional inflation rate of 22.9%.

Food inflation 37.8%

The year-on-year inflation for September 2022 had domestic inflation of 35.8% and imported inflation of 40. 7%, food inflation of 37.8% and non-food inflation of 36.8%.

The two  per cent Month-on-month inflation for September 2022, comprised food inflation of 2.2% and non-food inflation of 1.7%.

5% increase in imported inflation

Prices of imported goods accelerated nearly 5% faster than domestic items and food prices saw the largest hikes.

58.9% rise in prices of drinking water

Prices of drinking water rose 58.9%, and the category of housing, water, electricity, gas and other fuels rose 68.8%. Transport, which includes fuel, rose 46.8%.

Changes to the way inflation data is calculated

Meanwhile, the GSS announced changes to the way it calculates the data.

It updated the reference year to 2021, from 2018, and will update historical statistics.

The transition focuses on the pricing index and rate of inflation with a new reference period of 2021.

The computational considerations transitioning from 10 to 16 administrative regions are re-adjustment of regional weights, replacement and inclusion of markets and outlets, variation in price reference years and representative of items across regions.

10% cut in policy rate since January

The Bank of Ghana (B0G) raised its lending rate by 10 percentage points since the start of the year in an attempt to tame inflation and slow the cedi currency’s rapid depreciation.

Net foreign reserves dwindled $2.7bn

Net foreign reserves dwindled to around $2.7 billion in September from $6.1 billion in January, and the balance of payments deficit was just shy of $2.5 billion in the first half.