Ghana’s inflation rate rose to 23.5% in January — first increase in six months

Ghana’s inflation rate rose to 23.5 percent in January 2024 – up from 23.2 percent in December 2023.

The latest inflation rose for the first time in six months, reducing the chances of another rate cut next month.

Samuel Kobina Annim, the government statistician for Ghana, made the announcement on Wednesday. 

On January 11, 2023, inflation in the West African country hit 54.1 percent — its highest rate in 22 years.

According to the January 2024 report, food inflation cooled to 27.1 percent from 28.7 percent in December, while non-food prices increased to 20.5 percent compared to 18.7 percent in the previous month.

The statistics office said prices rose the most in the category of clothing and footwear rose to 22.8 percent. 

Housing, water, electricity, gas, and other fuels, came second, increasing to 22.6 percent year-on-year.

This was followed by education at 19.8 percent, then information and communication at 13.6 percent, insurance and financial services at 8.6 percent, and transport at 5.6 percent.

Meanwhile, Ghanaian President Nana Akufo-Addo earlier today announced a reshuffling of his cabinet — a move that has affected over 20 ministers.

Ken Ofori-Atta, minister of finance, was among those replaced.

Also, a 2023 World Bank report showed that a combination of domestic imbalances and external shocks in the previous year led to macroeconomic challenges in Ghana.