Ghana’s inflation rate rises to 21.5% — first increase in six months

Ghana’s consumer inflation rate rose to 21.5 percent in September. 

Samuel Kobina Annim, government statistician at the Ghana Statistical Service, announced the figure in Accra, on Wednesday.

Annim said the consumer prices rose to 21.5 percent from 20.4 percent in August.

He said the surge, driven by an increase in food prices, represents the first increase in six months.

Annim said the increase was due to a 3 percentage points jump in food inflation.

“This five-month successive decrease in the rate of inflation has been reversed in the month of September with food recording a higher rate,” Annim said.

On September 27, in response to improving economic indicators, including inflation, the Bank of Ghana, the country’s central bank, reduced its main interest rate by 200 basis points to 27 percent — marking its first rate cut since January.

Ernest Addison, Bank of Ghana governor, told a news conference that economic trends point to a proceeding disinflation process, and the price increase will continue to ease towards the short-term range target of 13 percent to 17 percent for the year.

“Such a strong signalling of the monetary policy rate by reducing it by 200 basis points tells you that the central bank is quite satisfied with the progress of recovery of this economy,” Addison said

He added that all economic indicators including growth, inflation and reserves are improving.

In June, the International Monetary Fund (IMF) agreed to disburse $360 million to Ghana as part of its $3 billion loan arrangement.