Skip to main content

Food, fuel prices push February inflation rate out of gear


 Ghana’s inflation rate has once again risen to hit 15.7 percent in February 2022.

This represents a 1.8 percent jump in the inflation rate compared to the 13.9 percent recorded in the first month of this year.

The current rate is the highest recorded since the rebasing of the CPI and inflation in August 2019.

This new rise in the inflation rate confirms predictions by economists and stakeholders that prices of fuel and food will continue to rise following tensions between Ukraine and Russia.

Already, Ghanaians are bearing the effect of the tensions on the price of fuel, which in turn has led to an increase in transport fares.

According to data from the Ghana Statistical Service, the 15.7 percent increase in February 2022 was mainly influenced by housing, water, electricity and gas (25.4%); transport (18.3%) as well as food and non-alcoholic beverages (17.4%).

Food and Non-Food Inflation

Food inflation regained its dominance, recording 17.4 percent year-on-year inflation, as against the 13.7 percent recorded in the previous month, all above a national average of 15.7 percent.

Read also: Nissan to shut Japan factory due to shortage of Chinese parts

This month’s food inflation (17.4%) is higher than both last month food inflation (13.7%) and the average of the previous 12 months (10.8%). ‘

Food inflation’s contribution to total inflation increased from 44.2% in January 2022 to 49.4% in February 2022.

Overall month-on-month food inflation was 3.2%, which is higher than both the twelve-month national month-on-month rolling average of food inflation (1.3%) and the rate recorded for February 2021 (0.0%).

All the 15 food subclasses recorded positive month-on-month inflation, with water recording the highest (9.0%).

Non-food year-on-year inflation on average went up again in February 2022 compared to January 2022 (from
14.1% to 14.5%).

Only one out of the 12 Non-food Divisions had the 12-month rolling average to be higher than the year-on-year inflation for February 2022 for the divisions.

Regional Inflation

At the regional level, the overall year-on-year inflation ranged from 11.6% in the Western Region to 19.5% in
the Greater Accra Region.

Eastern Region recorded the highest month-on-month inflation (7.3%) while Upper East region recorded a negative month-on-month inflation rate in February 2022 (-0.9%).

Labels:

Comments

Post a Comment

Popular posts from this blog

Fitch Solutions retains 2025 growth rate projection at 4.2%

 Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...
Post a Comment
Read more

BoG injects $20m into FX market to support 11 BDCs

  The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...
Post a Comment
Read more

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...
Post a Comment
Read more