Inflation Rate Spikes to 42.5% in Ghana
As Accra continues to roll out policies to reduce economic pressures, Ghana’s consumer price index that measures the country’s annual inflation rate rose slightly for the second month running to 42.5% in June 2023, from 42.2% in the prior month.
The acceleration was largely driven by rising prices for food and beverages which printed at 54.2% from 51.8% last month, according to statistic office data.
Data showed that non-food inflation moderated to 33.4%, representing 120 basis points decline from 34.6% in May 2023. On a monthly basis, the country’s consumer prices increased by 3.2% in June, slowing from a 4.8% jump in the prior month, which was the steepest in six months.
Ghana has been facing market pressures that saw Cedi losing weight while the country’s economic performance bumped amidst global disturbances that affected its fiscal performance.
The International Monetary Fund (IMF) approved a $3 billion support package for Ghana and said last month that its economy was stabilizing. Authorities asked the IMF for help in July last year after rampant inflation spurred street protests.
Ghana’s debt as a percentage of gross domestic product (GDP) inched near 100% amidst rising interest costs on foreign debt capital, a development that blocked government access to Eurobond –due to borrowing overshoot. #Inflation Rate Spikes to 42.5% in Ghana