In November, Ghana’s inflation rate hit its highest level in more than four years, breaching the central bank’s target band for the third month in a row as food and transportation expenses rose.

Annual inflation increased to 12.2 percent from 11 percent in October, according to Government Statistician Samuel Kobina Annim, who spoke to the media in Accra, on Wednesday, December 15, 2021.

In a Bloomberg poll, the median forecast of five analysts was 11.2 percent. In the month, prices increased by 1.4 percent.

The report is unlikely to persuade Ghana’s central bank, which aims for a price growth range of 6% to 10%, to boost interest rates next month while it waits to see if November’s 100-basis-point hike has brought inflation under control.

According to Courage Martey, an economist with Accra-based Databank Group, the consequences of the hike are projected to curb inflation from December to January.

In a report earlier this month, Renaissance Capital’s head of research for Africa, Yvonne Mhango, predicted that price growth will slow due to at least an average harvest next year, which would assist food inflation to decrease, off the high base of 2021.

Inflation is expected to average 9% in 2022, according to a Bloomberg poll of ten experts.

New taxes, such as the Electronic Transactions Levy (E-levy) which was announced in the 2022 Budget Statement and Economic Policy, and a weaker cedi, Martey added, are two risks to the prognosis.

This year, the currency has lost about 5% of its value against the dollar, raising import expenses.

Food inflation, which has been the main driver of the headline statistic, increased to 13.1 percent from a revised 11.5 percent in October, while non-food price growth increased to 11.6 percent from 11 percent, owing in part to rising transportation costs.



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