The year-on-year inflation rate for December 2021 marginally increased to 12.6 percent
The government has missed out on its single-digit inflation target for the year 2021 as country’s year-on-year inflation rate for December 2021 marginally increased to 12.6 percent from 12. 2 percent in November.
The December inflation is above the Bank of Ghana’s inflation target of 8+/-2 percent for 2021.
The Government Statistician, Professor Samuel K. Annim, who announced this at a news conference in Accra on Wednesday, said the rise in inflation in December was influenced by the rise in the prices of food and housing, water, electricity and gas.
He said for the sixth month in a row, prices of goods and services have consistently increased, going up by 4. 8 percentage points between June 2021(7.8 percent) and December 2021(12. 6 percent)
Prof. Anim explained that food inflation for December dropped to 12. 8 percent from 13.1 percent recorded in November with an average of the past 12 months as 10.3 percent.
However, he said, food inflation’s contribution to the total inflation decreased from 47.7 percent in November to 45.2 percent in December adding that the overall monthly food inflation rate was 1.2 percent which was higher than the 12 month national month-on-month rolling average of 1.0 percent.
He said 14 out of the 15 food sub-classes recorded positive month-on-month inflation with coffee and coffee substitutes recording a deflation of -0.3 percent.
For non-food, Prof. Anim said inflation went up by 12.5 percent from 11.6 percent recorded in November.
He said two out of the non-food group had the 12 months rolling average to be higher than the year-on-year inflation of December 2021.
“Housing, water, electricity, gas, and other fuels recorded the highest inflation in December 2021,” he added.
The government statistician said inflation for locally produced items was 13.3 percent while that of imported items was 10.4 percent.
On a regional basis, he said, Upper West recorded the highest overall inflation of 18.6 percent, with Eastern Region recording the lowest with 7.4 percent.
“For food inflation, Upper West had the highest inflation of 31.1 percent with Ashanti Region recording the highest in non-food with 13.0 percent.