Current 29.8% inflation rate mimics 2003 HIPC figure

Ghana’s current inflation rate of 29.8% (June 2022, year-on-year) is exactly the same rate recorded in 2003 when the country was under the Highly Indebted Poor Country Programme (HIPC), which started in 2002.

Current 29.8% inflation rate mimics 2003 HIPC figure

In 2002, Ghana received debt relief amounting to US$275.2 million.

The next year, the country enjoyed debt relief of US$290.8 million and another US$318.3 million as of November 2004.

According to the World Bank, Ghana’s inflation rate was 29.8% in 2003, which declined continuously after the HIPC programme to about 8.7% in 2011.

Current 29.8% inflation rate mimics 2003 HIPC figure

Ghana’s current year-on-year inflation shot up further by 2.2% to 29.8% in June 2022, latest data from the Ghana Statistical Service (GSS) has revealed.

Once again, the rate of inflation was driven by Transport (41.6%); Household Equipment and Maintenance (39.6%); Housing, Water, Gas and Electricity (38.4%); Personal Care and Miscellaneous (31.7%); Recreation, Sports and Culture (31.3%) and Food and Non-Alcoholic Beverages (30.7%).

These items recorded inflation rates higher than the national average.

According to the figures, food inflation surged to 30.7% in June 2022 from 30.1% recorded in May 2022.

The current June inflation rate of 29.8% is about 8 times the targeted rate of 8%; plus or minus 2%.

The latest data come at a time when government is at the door of the International Monetary Funds for a bailout to curb the impending financial downturn.

Ghana’s Mid-year Budget Review by the Finance Minister, Ken Ofori-Atta, has also been postponed to July 25, 2022.

By that time, the ongoing talks between government officials and IMF negotiators would have been concluded.