After five months of decline, Ghana consumer inflation jumped to 21.5% in September. Basically, it is fueled by rising food costs.
This unexpected rise follows a recent central bank interest rate cut, as the nation struggles to recover from its worst economic crisis in a generation.
In Accra, a new economic challenge emerged in September.
After five months of declining inflation, the numbers took a surprising turn.
Ghana’s consumer inflation climbed to 21.5% year-on-year, up from 20.4% in August.
The main culprit? Soaring food prices.
Ghana’s government statistician, Samuel Kobina Annim, shared this news during a recent press conference.
He explained that food inflation had jumped by 3 percentage points, reversing the trend of decreasing inflation.
“This five-month streak of lower inflation has ended,” Annim noted.
“Food prices are now rising at a higher rate.”
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Just last week, the central bank had taken a hopeful step by cutting its main interest rate by 200 basis points to 27%.
This decision was made in light of improving economic indicators, including inflation trends.
However, the recent spike in consumer prices adds uncertainty to the situation.
Ghana, a country rich in cocoa, gold, and oil, is struggling to recover from its worst economic crisis in a generation.
As Ghana inflation rises again, the road to recovery may prove more challenging than expected.
