Inflation to increase at a slow rate in 2022
High inflation projected to affect cedi negatively
Increasing monetary rates to affect prices
Inflation went up 12.2% in November 2021
Ghana’s inflation to inch up in 2022 but at a slow rate, according to a prediction by the Center for Economics, Finance and Inequality Studies (CEFIS), myjoyonline reports.
Attributing the rise in inflation to the increasing rate of the monetary policy and liquidity tightening on the international financial market, the Center says this will affect the cedi negatively.
It noted that “the increasing rate of the monetary policy rates over the recent quarters does not predict a decrease in price levels. This coupled with the not too pleasant macroeconomic variables all points to the fact that inflation would largely continue to rally up in the 2022 albeit at a slow rate”.
The Center also said the “liquidity tightening on the international financial market, coupled with the uninspiring debt sustainability level for Ghana measured by the Debt to Gross Domestic Product ratio may mean that the government will have contract debt at a higher cost than before”.
In November last year, inflation went up to 12.2% being the highest since the rebasing of the Consumer Price Index was done in 2019 according to the Ghana Statistical Service.
Housing, Water and Electricity (20.5%) topped the list of items again in the inflation basket that contributed to the rate of increment.
Food inflation (13.1%) was higher than food inflation (11.5%) and the average of the previous 12 months (10.4%) in November whiles month-on-month inflation between October and November 2021 was however 1.4%.