Transport fares, food prices push inflation rate to 27.6% in May 2022

Increase in transport fares and surging food prices pushed the rate of inflation in May 2022 to 27.6%, the Ghana Statistical Service has announced.

This is against 23.6% recorded in April 2022.

According to the Government Statistician, Professor Kobina Annim, the rate of inflations for Transport (39.0%), Household Equipment and Maintenance (33.8%), Housing, Water, Gas and Electricity(32.3%) and Food and Non-Alcoholic Beverages (30.1.6%) were higher than the national average (27.6%).

In May 2022, 12 of the 13 divisions record inflation rates higher than the rolling average from June 2021 to May 2022.

The data showed that Food inflation in May 2022 was 30.1%, compared with 26.6% in April 2022. Non-food Inflation was however 25.7% in May 2022, as against 21.3% the previous month.

The margins between food and non-food inflation was 4.4 percentage points relative to 5.4 percentage points for March 2022 and 5.3 percentage points for April 2022.

Focusing on year-on-year food inflation for May 2022, five sub-classes record inflation rates higher than the overall food inflation (30.1%). This was distantly led by Oils and Fats (52.0%) followed by Water (42.4%).

The inflation for imported goods was 28.2%, which is higher than the 24.7% recorded for April 2022, while the inflation for locally produced items was 27.3%, up from the 23.0% recorded in April 2022.

Meanwhile, Eastern region for the first time in a while recorded the highest rate of inflation of 31.2% due to rising food prices in the region.

Upper East region however recorded the least inflation rate of 19.5%.

Whilst the Greater Accra region recorded an inflation rate of 29.7%, whilst the Ashanti region recorded an inflation rate of 27.1%.

If the rate of increase in inflation continues, then interest rates are expected to surge further.

Presently, interest rates on the short term of the money market are hovering around 22% plus.