- By Oubah Jérémie Ifeanyi | Nairametry
Ghana’s Statistical Service reported that its inflation rate rose to 40.4% for the month of October 2022 as the cost of goods and services continued to rise in the West African country.
Ghana’s inflation rate for the month of September was 37.2%, suggesting that the country’s economy, hit by currency depreciation and fiscal challenges, is not going away anytime soon.
On a monthly basis, the inflation rate was 2.7% for the month under review, compared to 2% in September 2022.
Other information: Food inflation for the month under review increased by 43.7% over one year against 37.8% the previous month
- The country’s underlying inflation rate, which excludes food, rose to 37.8% year-on-year from 36.8% the previous year.
- Ghana also captures the inflation rate for locally produced items and confirmed an inflation rate of 39.1% vs. 43.7% for currency driven imported items.
- This suggests that it is cheaper to buy locally made Ghanaian products.
Inflation factors: A quick look at 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 has increased by 69.6% year-on-year, a testament to the challenges faced by ordinary Ghanaians.
- Furnishings and household equipment and transport also progressed respectively by 55.7% and 46.3% over one year.
- However, Ghanaians pay less for education with inflation. up just 9.5%
Relevance to Nigeria: Africa’s largest economy, Nigeria, is also experiencing runaway inflation currently at around 20.7% YoY.
- Many Nigerians also live in Ghana and once benchmarked, the economy has a model for Nigerians to follow.
- However, the rising cost of living in Ghana may force Nigerians living there to return or seek a better life in other countries, especially in Europe.