Ghana Inflation Rises

GHANA’S inflation rose to 13,8% in March from 13,2% in February due largely to high prices for non-food items, including oil, the Ghana Statistical Service (GSS) said on Friday.

Grace Bediako, head of the GSS, said the rate of inflation should slow in the coming months as supplies of foodstuffs improved following the end of the annual lean season.

“There is no cause for alarm … We should have much lower inflation in June if everything goes on well,” she told a news conference.

Food and beverages contributed 5,9 points of March’s figure, while non-food items accounted for 7,9 points.

Core inflation, which strips out energy and utility prices, has increased steadily over the last five months as the traditional food shortages of the dry season gripped. Last month, the central bank raised its key primary interest rate by 75 basis points to 14,25% to tackle inflationary pressure from high oil and food prices.

Central Bank Governor Paul Acquah said much of the inflationary pressure was the result of
the knock-on effects of high crude oil prices on the domestic market and high international food prices. — Reuters.