The Ghana Statistics Service reported that its inflation rate rose to 40.4% in the month of October 2022, as the cost of goods and services continues to rise in the West African nation.
the rate of inflation in Ghana for the month of September it was 37.2%, suggesting that the country’s economy battered by currency depreciation and fiscal challenges will not go away any time soon.
Month to month rate of inflation it was 2.7% for the month under review compared to 2% in September 2022.
Other data: Food inflation for the month under review increased 43.7% year-on-year compared to 37.8% in the previous month
- The country’s core inflation rate, which excludes food, rose 37.8% year-on-year from 36.8% a year earlier.
- Ghana also captures the inflation rate for locally produced items and confirmed an inflation rate of 39.1% compared to 43.7% for currency-induced imported items.
- This suggests that it is cheaper to buy locally made Ghanaian products.
Drivers of inflation: A cursory review of the data also reveals that Ghanaians are experiencing higher inflation rates for housing, water, electricity, gas and other fuels.
- The inflation rate for these items rose as high as 69.6% year on year, indicating the challenges faced by ordinary Ghanaians.
- Furniture and home equipment and transportation also rose by 55.7% and 46.3%, respectively, year-on-year.
- However, Ghanaians pay less for education with inflation. increasing only 9.5%
Relevance to Nigeria: Africa’s largest economy, Nigeria, is also experiencing runaway inflation currently running at around 20.7% per year.
- Many Nigerians also live in Ghana and once the economy is referenced, it has a role model for Nigerians.
- However, the rising cost of living in Ghana could force Nigerians living there to return or seek a better life in other countries, especially Europe.