Increase in food prices, others push October inflation to 40.4 %

Increases in food prices; housing, electricity and fuel, and three other divisions pushed inflation for the month of October 2022 to 40.4 %.

This means the cost of credit is expected to go up further as the Bank of Ghana is set to take a decision on the policy rate – the rate at which it lends to commercial banks- by November 25, 2022.

The food inflation recorded the highest rate among all the components as against non-food inflation, according to figures from the Ghana Statistical Service. The increase by food inflation indicates a jump of more than 3% from the previous rate of 37.2%.

The other four divisions are Housing, Water, Electricity, Gas and Other Fuels (69.6%); Furnishings, Household Equipment ad Routine Household Maintenance (55.7%); Transport (46.3%) and Personal Care, Social Protection and Miscellaneous Goods and Services (45.5%).

Food inflation was 43.7% in the month of October 2022, compared with 37.8% in September 2022. It has bigger weight than the above divisions.

Eight subclasses in the food inflation group recorded higher rates. This was distantly led by Water (64.3%) followed by Milk, Other Dairy Products and Eggs (58.9%) and Sugar, Confectionery and desserts (54.6%).

Also in the case of month-on-month food inflation nine subclasses record rates higher than the national average. Milk and Other Dairy Products and Eggs recorded the highest, 7.8%.

Increase in food prices, others push October inflation to 40.4 %

Non-food Inflation was however 37.8% in October 2022, from 36.8% recorded in September 2022.

Addressing the media, Government Statistician, Professor Samuel Kobina Annim explained that all items in the component for calculating the rate of inflation recorded an increase.