The International Monetary Fund (IMF) has revised its end-year inflation rate for Ghana in 2022 to 16.3%, from 8.8%.
It is however forecasting 13% end-year inflation rate in 2023.
This means the country will miss the Bank of Ghana target of 8%+\-2.
According to the Fund’s April 2022 World Economic Outlook Report, the rising inflation has been triggered by higher commodity prices such as crude oil and cereals as a result of the Russia/Ukraine conflict.
“The ongoing war in Ukraine, associated sanctions, market participants’ actions in response to the global outcry, and rising counterparty risk have caused severe disruptions in commodity markets and supply chains across the globe. Amid sharply rising volatility, prices have skyrocketed across the commodity complex, causing severe pressures in commodity financing and derivatives markets. Shipping costs of commodities have increased, and higher commodity prices have raised the financing needs of commodity traders and those involved along the supply chain”.
“Inflation is expected to remain elevated for longer than in the previous forecast, driven by war-induced commodity price increases and broadening price pressures. For 2022, inflation is projected at 5.7% in advanced economies and 8.7% in emerging market and developing economies —1.8 and 2.8 percentage points higher than projected in January”, it added.
Although a gradual resolution of supply-demand imbalances and a modest pickup in labor supply are expected in the baseline, easing price inflation eventually, the IMF said uncertainty again surrounds the forecast.
Inflation hits 19.4% in March 2022
Inflation hit 19.4% in March 2022, the highest in nearly 13 years.
The higher inflation was pushed largely by food prices.
Foodstuffs such as Oil and Fats (28.2%), Water (27.1%), Cereal Products (25.0%), Vegetables (23.8%), Fish and Other Seafood (23.7%), Fruits and Nuts (22.1%), Soft Drinks (20.5%) and Live Animals and Meat (20.2%) recorded inflation rate, higher than the national average.
According to the figures, food inflation recorded a rate of 22.4% in March 2022, compared to 17.4% in February 2022.