Cedi continues to slump as Ghana’s inflation hit a 22-year high of 54%

Ghana economy
Ghana economy

ACCRA (9News Nigeria) – Ghana’s consumer inflation has risen from 50.3% the previous month to 54.1% year-on-year in December, being its highest level in 22 years.

The statistics office said that fuel, utilities and food drive the inflation’s continuous rise as the International Monetary Fund warns that a third of the world economy will hit a recession in 2023.

The West African gold, oil and cocoa producer is battling its worst economic crisis in a generation.

Its cedi currency slumped last year, fuelling inflation, as government spending cuts and central bank interest rate hikes failed to tame price rises.

December’s inflation reading is the highest since April 2001, when it was at 59.7%.

Prices of goods and services mainly in the category of housing, water, electricity, gas and other fuels have continued to skyrocket up to 82.34% year-on-year.

Furnishings and household equipment came second at 71.52%, followed by transport at 71.42%. Food and non-alcoholic beverages inflation were at 59.71% year-on-year.

In July, Ghana approached the International Monetary Fund (IMF) to ask for financial help after soaring prices and economic hardship spurred street protests.

A staff-level agreement with the IMF for a $3 billion, three-year support package was secured in December. Debt restructuring is a condition to access the funds.

The government has launched a domestic debt exchange programme and said earlier on Wednesday that negotiations with local pension funds on the terms were ongoing.

On Tuesday, it also asked to restructure its bilateral debt under the G20 common framework platform.

9News Nigeria/ Reuters

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