Ghana inflation rate in March climbed to 19.4%, due to surge in the price of foodstuff, fuel and fertilizer.
Authorities cite supply disruptions caused by the Russia-Ukraine crisis, for the rise in the price of these basket items.
This is Ghana’s the highest inflation rate in 13 years up from a rate of 15.7% recorded in February 2022.
According to the Government Statistician Samwel Kobina Annim, the March rate breached the central bank target range of 6-10%, for a seventh month.
Ghana food prices rose to 22.4% year-on-year from 17.4% in February, while non-food inflation accelerated to 17% in March from 14.5% in previous month.
According to Razia Khan, Head of Research for Africa and Middle East at Standard Chartered Bank, the inflation surge in Ghana was not expected and thus it is uncertain where there will be a near-term peak in the inflation rate.
The Central Bank in Ghana, through the think-tank monetary policy committee lifted its key rate by 250 basis points in March to curb inflation.
Ghana also took measures to cut spending and introduced a tax on electronic payments to narrow its budget deficit and address concerns by investors on its ability to meet set fiscal targets.
The central bank will be under pressure to raise the key lending rate at its next meeting, to curb the rising cost of living.
Ghana has a high differential between its benchmark interest rate and inflation, so as to attract investment flows.