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Ghana inflation Scales New Peak As It Seeks IMF Bailout

President Nana Addo Dankwa Akufo-Addo

Consumer inflation in Ghana accelerated to 29.8 percent annually in June from 27.6 percent in May, official data showed on Wednesday, shattering another record while the West African nation talks to the International Monetary Fund (IMF) for support.

Inflation last hit 29 percent in January 2004.

In a report on Wednesday, the country’s statistics agency said June prices were driven higher by items such as fuel and bread, with prices of imported goods rising more than domestically produced ones for the third month in a row.

Transport, which includes fuel, registered the highest price growth at 41.6 percent. Diesel saw 99.7 percent year-on-year inflation while petrol prices were up 69.4 percent.

Housing, which includes water, electricity and gas, saw a 38.4 percent increase and food inflation rose to 30.7 percent. Bread prices were up 44.5 percent.

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Hundreds took to the streets of Ghana’s capital Accra last month to protest against high inflation, weak growth and a plummeting local currency. Days later, four of Ghana’s largest teachers’ unions said they would strike if their wages were not increased in tandem with rising prices.

After pledging not to return to the IMF, the government said shortly after the protests that it would seek an economic support package to ward off a “fully blown crisis”.

A staff mission from the IMF was due to conclude its first visit to Ghana on Wednesday.

A mid-term budget review scheduled for Wednesday was postponed to an unspecified date due to the IMF talks, a finance ministry spokeswoman told Reuters.

The government has blamed its woes on a combination of external forces including COVID-19, the war in Ukraine, and American and Chinese economic downturns.

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Source: Reuters

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