Inflation rate for 2021 ended at 12.6%

Inflation ended the year 2021 with a double digit rate, as December 2021 inflation hit 12.6 percent.

This is 0.4% higher than the November 2021 rate of inflation.

It’s also higher than the Bank of Ghana’s inflation target of 8+/-2% and most research institutions and analysts’ estimate for 2021. 

According to the Ghana Statistical Service (GSS), the surge in inflation was driven by increase in non-food inflation rate.

Housing, Water, Electricity, Gas and other Fuels (20.7%) recorded the highest inflation in December 2021. It was followed by Transport with 11.7%.

Also, prices of goods and services went up by 1.2% between November and December 2021.

Food inflation stood at 12.8%, lower than November 2021 rate of 13.1%. However, non-food inflation went up to 12.5% in December 2021, from 11.6% in November 2021.

The inflation for imported goods was 10.4%, higher than the 9.8% recorded in November 2021. However, inflation for locally produced items was 13.3%, up from 13% recorded in November 2021.

Regional inflation

Meanwhile, the Upper West region (18.6%) maintained its dominance as the region with the highest rate of inflation in December 2021, whilst the Eastern region (7.4%) recorded the lowest rate of Inflation.

The Greater Accra and Ashanti regions registered inflation rates of 12.9% and 16% respectively, higher than the national average.