Year on year inflation measured by the Consumer Price Index, (CPI) has increased to 40.4 percent for the 12 months period end October, 2022 from 37.2 percent recorded at the of September, 2022, after months of rapid currency depreciation.
Ghana’s cedi had one of its worst months on record in October and has lost around half its value against the dollar in 2022. It has been Africa’s worst performing currency this year, according to the World Bank.
“It’s possible that the impact of the exchange rate changes will linger on for some number of months,” said government statistician Samuel Kobina Annim, adding the duration of the impact would depend on how effective polices are in the next two to three months at mitigating the effects.
October inflation was highest in the category of housing, water, electricity and gas, with prices up 69.6%. Furniture, household equipment and maintenance came second, at 55.7%, and transport, including fuel, was third at 46.3%.
Food inflation rose to 43.7%, from 37.8% last month, driven higher by items such as water, milk, eggs and sugar, according to the statistics agency.
Ghana’s dollar-denominated sovereign bonds fell, on a day when many emerging market assets were gaining on hopes that the U.S. Federal Reserve would pare back its interest rate hikes. Its longest-dated 2061 maturity was down the most, by 0.742 cents to 32.675 cents on the dollar.
The central bank has hiked its main lending rate by 10 percentage points since the start of the year in attempt to hold back inflation and slow the cedi’s depreciation.
The food inflation recorded the highest rate among all the components as against non-food inflation, according to figures from the Ghana Statistical Service. The increase by food inflation indicates a jump of more than 3% from the previous rate of 37.2%.
The other four divisions are Housing, Water, Electricity, Gas and Other Fuels (69.6%); Furnishings, Household Equipment ad Routine Household Maintenance (55.7%); Transport (46.3%) and Personal Care, Social Protection and Miscellaneous Goods and Services (45.5%).
Food inflation was 43.7% in the month of October 2022, compared with 37.8% in September 2022. It has bigger weight than the above divisions.
Eight subclasses in the food inflation group recorded higher rates. This was distantly led by Water (64.3%) followed by Milk, Other Dairy Products and Eggs (58.9%) and Sugar, Confectionery and desserts (54.6%).
Also in the case of month-on-month food inflation nine subclasses record rates higher than the national average. Milk and Other Dairy Products and Eggs recorded the highest, 7.8%.
Non-food Inflation was however 37.8% in October 2022, from 36.8% recorded in September 2022.
Addressing the media, Government Statistician, Professor Samuel Kobina Annim explained that all items in the component for calculating the rate of inflation recorded an increase.
Inflation for locally produced items was 39.1%, whilst inflation for imported items was 43.7%.
Eastern Region recorded the highest inflation of 51.1% in Ghana in October 2022.
It was followed by Greater Accra region (49.1%) and the Savannah region (47.6%).
The region with the least inflation was Volta (25.8%).
The Central Region (57.9%) recorded the highest food inflation while Greater Accra recorded the highest non-food inflation (53.2%).
