Transportation Leads As Driver Of Inflation In June
Ghana Statistical Service has reported that transportation is the leading driver of inflation in June as Ghana’s rate rise to 29.8 percent.
This was captured in a report released by the Ghana Statistical Service.
The hikes in fuel prices over the years are pushing transportation costs upwards always.
However, Six of the 13 items for the calculation of inflation recorded inflation rates higher than the national average, according to the Ghana Statistical Service.
Transportation led with 41.6 percent; Household Equipment and Maintenance were 39.6 percent; Housing, Water, Electricity, and Gas were at 38.4 percent, Personal Care and Miscellaneous Goods were at 31.7 percent; Recreation, Sports and Culture were at 31.3 percent and finally, the inflation of Food and Non-Alcoholic Beverages was at 30.7 percent.
Ghana’s inflation went up from 27.6 percent in May 2022, with month-on-month inflation between May 2022 and June 2022 of 3 percent.
Food inflation stood at 30.7 percent, a marginal increase from 30.1 percent in May, while the average food inflation over the last 12 months was 17.5 percent.
Non-food inflation was 29.1 percent, marking a significant increase from 25.7 percent in May.
On average last 12 months, non-food inflation has been 15.3 percent.
The increasing inflation and the rising cost of living lead to protests from some opposition groups earlier in July while labor unions are currently generating and going on strike to demand a cost of living allowance from the government.
The government has also turned to the International Monetary Fund (IMF) to support the economy, where it is expected to request support of almost $2 billion to shore up its finances.
Ghana currently has a total public debt stock of GH¢391.9 billion, as of the end of the first quarter of 2022.
The cedi is also the poor-performing African currency, after falling 22 percent against the dollar this year.