Inflation shoots up to 33.9% in August… Highest in 21 years

Inflation shot up to 33.9 per cent in August 2022, the highest in 21 years, data from the Ghana Statistical Service (GSS) has revealed.

This is expected to increase the cost of borrowing by raising interest rates further.

Relative to July 2022, year-on-year inflation increased by 2.2 percentage points in August 2022 and month-on-month inflation reduced by 2.2 percentage points over the same period.

According to on a monthly basis, the rate of inflation between July 2022 and August 2022 also went up by 1.9 per cent.

Once again, the drivers of the rate of inflation were Housing, water electricity, gas and other fuels (46.7 per cent); Transport (45.7 per cent); Furnishings, household equipment and routine household maintenance (44.7); Recreation, sport and culture (36.4 per cent); Personal care, social protection and miscellaneous goods and services (36.0 per cent) and Food and Non-Alcoholic Beverages (34.0 per cent).

There was however wide disparity observed across the 13 divisions.

Food inflation in the month of August 2022 was 34.4 per cent compared with 32.3 per cent the previous month.

Eight subclasses however recorded higher rates. This was distantly led by Oils and Fats (74.0 per cent) followed by Fruits and Nuts (49.4 per cent) and Fish and Other Seafood (46.4 per cent).

In the case of month-on-month food inflation eight subclasses record rates higher than the national average (1.8 per cent).

For non-food inflation, it stood at 33.6 per cent in August 2022, higher than the 31.3 per cent recorded in July 2022.

Inflation for locally produced items was 33.4 per cent, whilst inflation for imported items was 35.2 per cent.

For the fifth month in a row (since April 2022) imported items record higher inflation rates than locally produced items.

Meanwhile, the Eastern Region recorded the highest inflation rate of 41 per cent, followed closely by Western Region (40.2 per cent) and Greater Accra Region (39.3 per cent).

The Upper East Region however recorded the lowest rate of 22.8 per cent.

But Western Region recorded highest food inflation (47.0 per cent) and Eastern Region, the highest non-food inflation (42.0 per cent).

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