The cost of food and services known as the Year-on-Year inflation rate for August 2022 in Ghana has increased to 33.9 per cent, up from 31.7 per cent in July.
Highest since August 2001
It is the highest reading since August 2001, even after the central bank delivered a record 300 basis points rate hike during an emergency meeting in August.
BoG responds to utility tariffs increases
The Bank of Ghana (BoG) increased the prime rate soon after the Public Utilities Regulatory Commission (PURC) announced a 27.15 per cent increase in electricity and 21.55 per cent increase in water which took effect September 1, 2022.
Least monthly increase in 8 months
On a monthly basis, consumer prices rose by 1.9%, the least in eight months, after a 3.1% rise in the prior month. Ghana Statistical Service (GSS) said.
Food inflation rises to 34.4%
Prices continued to soar for food which rose to 34.4% compared to 32.3% in July.
Non-food inflation increase to 33.6%
Also, prices for non-food items such as transport, housing and utilities went up to 33.6% as against 31.3% for July.
Prices of imported goods experiences higher increases
The prices of imported goods experience higher increases than domestic ones for the fifth month largely due to the depreciating cedi.
Consumers and business complain
Consumers and business people say they are being pushed out of business as the local currency continues to lose its value against the U.S. dollar.
Inflation for locally produced goods
Inflation for locally produced items was 33.4 per cent while inflation for imported items was 35.2 per cent.
Greatest contributors to August inflation
Housing, water, electricity, gas and other fuels at 46.7 per cent, transport with 45.7 per cent inflation rate, furnishings, household equipment and routine household maintenance at 44.7 per cent were the greatest contributors to the August inflation.
Eastern Region records highest inflation of 41 %
At the regional level, the Eastern region recorded the highest inflation of 41 per cent while the Upper East Region registered the lowest rate of 22.8 per cent.
The Consumer Price Index measures changes in the price of a fixed basket of goods and services purchased by households.
Prices are collected for approximately 39,500 products every month with price collection done in 44 markets.
Products are ordered in a hierarchy of 13 divisions, 44 groups, 98 classes, 156 subclasses and 307 items.
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