Ghana Inflation Rate Rises to Highest This Year on Weak CediMoses Mozart Dzawu
Ghana’s inflation quickened in September to the fastest pace this year as the cedi remained at a record low, boosting the cost of imports, and the government removed subsidies on gasoline.
The inflation rate rose to 11.9 percent from 11.5 percent in August, Baah Wadieh, a statistician at the Ghana Statistical Service, told reporters in the capital, Accra today. The statistics office began using a 2012 base for inflation in January.
“The impact of the fuel price adjustment was felt on inflation through transport fare increases,” Collins Appiah, director of asset management at NDK Asset Management Ltd. said by phone before the release.
The government began removing subsidies on gasoline prices this year, raising prices for fuel, a majority of which is imported. Oil has risen 18 percent in London since reaching a one-year low in July. The cedi has dropped 13 percent this year against the dollar, the second-worst performer among the African currencies tracked by Bloomberg.
Ghana’s National Petroleum Authority raised gasoline prices by 3.7 percent on Sept. 16. The central bank left the benchmark interest rate unchanged for a second consecutive month on Sept. 18 to counter sluggish growth and a weaker cedi. The inflation rate will return to within the bank’s target of 9 percent plus or minus 1 percentage point by the second half of next year, Governor Kofi Wampah said last month.
The cedi was unchanged at 2.19 per dollar at 10:56 a.m. in Accra. The rand is the only African currency that has dropped more than the cedi this year.