The country’s inflation rate went up to 12.6 percent in December, the highest level since April 2017.
The rate is the official inflation figure for 2021.
This comes after the central bank raised its benchmark monetary policy rate by 100 bps to 14.5 percent from 13.5 percent in November 2021 to curb price rise.
The move was also to bolster the economy.
Government Statistician, Professor Samuel Kobina Annim, told reporters in Accra on Wednesday, January 12, the rate exceeds finance ministry’s forecast of 8 percent.
He noted a quickened trend in inflation. “This is the sixth consecutive month in a roll that prices of goods and services have gone up, indicating a 4.8 percentage difference between the rates recorded in June 2021 which was 7.8 percent relative to December 2021 which was 12.6 percent”.
Non-food inflation, particularly housing and transport, which includes fuel continue to drive the country’s inflation. “The gap between food and non-food inflation has been narrowed from the month of December 2021 to a gap of 0.3 percentage point as food inflation stood at 12.8 percent relative to 12.5 percent for non-food inflation”, according to Professor Samuel Annim.
He continued, “Locally produced items (13.1 percent) continue to dominate imported items (10.5 percent)”.
On the regional level, inflation rates for Upper West Region remain high with 18.6 percent, while Eastern Region recording the least rate of 7.4 percent. Ashanti Region overtakes northern region as the second highest in inflation rate of 16.0 percent.
The average inflation rate for the year 2021 was 9.17 percent which is within bank of Ghana’s medium to long-term band range of 8 plus or minus 2.
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