In April, Ghana’s inflation rate increased to 23.6 percent from 19.4 percent in March. The new high is the highest since January of 2004.
According to Samuel Kobina Annim, Ghana’s Government Statistician, imported goods have surpassed domestically produced goods for the first time in 29 months.
The cost of imported products such as cooking oil and gasoline increased as a result of the war in Ukraine and Indonesia’s prohibition on palm oil exports, resulting in headline inflation exceeding the central bank’s goal range of 6% to 10%.
Meanwhile, Ghana’s central government has been slashing spending in order to curb the ongoing price rise and stimulate the economy.
Costs rose 5.8% in April, with food prices rising 26.6 percent year over year, up from 22.4 percent in March, and non-food inflation rising to 21.3 percent in April, up from 17 percent the previous month.
The March statistics come after the country’s central bank boosted interest rates in anticipation of rising inflation, which analysts fear would plunge one of West Africa’s largest economies into disaster.
Similarly, the government announced a package of spending cuts in order to minimize its budget deficit and support the local currency, as well as a 20 percent to 30 percent drop in appointee wages.
