Ghana’s inflation rate rose to its highest level in more than 10 years in the month of March.
Government Statistician Samuel Kobina Annim told Bloomberg that the annual inflation soared to 19.4% in March, up from 15.7% in February, .
This surge comes after the monetary policy committee raised its key rate by 250 basis points last month to contain inflation. The central bank’s inflation target was 8%, but current data shows that the target has been exceeded by 11.4%.
The government implemented a couple of policies including spending cuts and enacted a tax on electronic payments in an effort to minimize the country’s budget deficit and pacify investor concerns about the country’s fiscal targets’ credibility.
Food-price growth rose to 22.4% year-on-year from 17.4% in February, while non-food inflation raced to 17% in March as against 14.5% in the previous month.
Continuous rise in inflation is likely to put pressure on Ghana’s central bank to raise borrowing costs next month. To encourage investment, Ghana seeks a large difference between its benchmark interest rate and inflation.
Ghana’s 2026 Eurobond yield increased marginally to 14.6% by 10:50 a.m. in Accra.