Ghana’s inflation rate rose higher in the month of July 2022 from 29.8% recorded in June to 31.7% in July , the nation’s currency Cedi falls 30% against dollar since the inflation hike, becoming second worst performing currency in the world according to Bloomberg analysis.
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The country’s inflation rate touched a 19-year-high in June, as a result of a surge in transportation costs.
The hike in transport cost is due to the sustained global energy prices, which has seen the price of gasoline hit record highs, as crude oil prices remain elevated. Also, higher cost of household equipment and maintenance, and utilities like electricity, gas, and water contributed to the uptick in the inflation numbers.
The West African nation has witnessed a sharp rise in its year-on-year inflation rate, despite averaging 12% in the last quarter of 2021. However, inflation rate averaged 27% in the second quarter of 2022 and is set upward with a 31.7% rate in the review month.
This uptick is coming after Ghanaians took to the streets of Accra in June to protest against new taxes on electronic transactions as well as other economic hardships being faced by the people.
Notably, inflation rate at 31.7% is the fastest pace since November 2003, also marking the 11th consecutive month that the rate has exceeded the top of the central bank’s target band of 6 to 10%. According to Bloomberg, the Ghanaian cedi has depreciated by 30% against the US dollar year-to-date, indicating the second-worst performing currency in the world.