June 14 (Bloomberg) -- Ghana's annual inflation rate rose to 16.9 percent in May, the highest since at least July 2005, as food and transport costs increased, the county's statistics office said.

Inflation accelerated from 15.3 percent in April, the Accra-based Ghana Statistical Service said in an e-mailed statement late yesterday.

Food prices in Ghana have risen since heavy seasonal rains in August and September resulted in widespread flooding in the country's northern regions, where staple foods including yam, corn and cassava are grown. The Bank of Ghana on May 19 raised its benchmark interest rate to 16 percent, citing concerns about accelerating inflation.

To contact the reporter on this story: Emily Bowers via Johannesburg at asguazzin@bloomberg.net

Last Updated: June 14, 2008 03:12 EDT