Ghana’s inflation rate races to 18-year high

In April, Ghana’s inflation rate rose from 19.4% in March to an 18-year high of 23.6% . The new rate is the highest reached by the west African country since January 2004.

Earlier, in anticipation of inflation, the central bank of Ghana raised the interest rate.

According to the country’s government statistician, Samuel Kobina Annim, who disclosed this data, for the first time in 29 months imported items surpassed locally produced items.

The data for the month of April showed that the price of commodities rose by 5.8% as food price inflation reached 26.6% year-on-year from 22.4% recorded in March while non-food inflation rose to 21.3% in April as against 17% in the month of March.

To control the increasing prices of commodities and shore up the economy of the country, the government of Ghana initiated some measures. It announced a package of spending cuts to reduce its budget deficit and boost the local currency.

Salaries of political appointees of the government were also cut by between 20% and 30%.