…rises for second straight to 3.7% in May
Ghana’s inflation rate rose to 3.7 percent in May, its highest reading since January, raising concerns over renewed price pressures after more than a year of declining inflation in Africa’s top gold producer.
Data released on Wednesday by the Ghana Statistical Service showed inflation climbed from 3.4 percent in April, representing a 0.3 percentage-point increase driven largely by rising food prices.
The latest reading marks the second inflation uptick in the past 16 months, following a prolonged downward trend that began after inflation peaked at 23.8 percent in December 2024.
Speaking at the monthly data release in Accra, Alhassan Iddrisu, government statistician said food prices were the primary driver of the increase in headline inflation.
Food inflation accelerated to 3.3 percent year-on-year in May from 2.2 percent in April, while non-food inflation eased slightly to 4.1 percent from 4.2 percent over the same period.
The rise in food prices comes amid higher oil and fertiliser costs linked to tensions in the Middle East, as well as the lingering impact of climate-related disruptions on domestic agricultural production.
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Inflation for locally produced goods rose to 5.0 percent last month from 4.7 percent in April, reflecting mounting domestic cost pressures. Inflation for imported goods also increased, rising to 0.9 percent from 0.5 percent.
On a month-on-month basis, consumer prices increased by 1.1 percent, slightly higher than the 1.0 percent recorded in April.
Despite the recent uptick, inflation remains well below the Bank of Ghana’s medium-term target range of 6 to 10 percent, suggesting policymakers still have room to balance price stability with economic growth concerns.
Speaking during the Monetary Policy Committee press conference in May, Bank of Ghana Governor Johnson Asiama said inflation is expected to gradually rise toward the target range by the end of 2026.
According to Asiama, exchange rate-related base effects, food supply conditions and transport fare adjustments are expected to shape the inflation outlook in the coming months.
The BoG recently kept its benchmark Monetary Policy Rate unchanged at 14 percent, pausing a year-long easing cycle that saw five consecutive rate cuts.
The central bank’s decision reflects growing caution over renewed inflationary risks, particularly as higher global crude oil prices and escalating geopolitical tensions in the Middle East continue to threaten price stability across emerging markets.
