Market News

ACCRA, May 7 (Reuters) – Ghana’s consumer inflation slowed for a fourth month in a row in April, to 21.2% year on year from 22.4% in March, the statistics service said on Wednesday.

Government statistician Alhassan Iddrisu told a news conference that the latest decline was driven by a moderation in both food and non food inflation.

“Food inflation remains the biggest price driver,” Iddrisu said, adding that it was still elevated.

Ghana’s economy has been battling persistently high inflation, with the rates above the central bank’s target of 8% with a margin of error of 2 percentage points either side.

Central bank governor Johnson Asiama said in March a tight monetary policy stance was needed to lower consumer inflation in the gold, oil and cocoa-producing West African nation.

He also announced a surprise rate hike, adding that its impact on inflation will be reassessed before the next rate meeting in May.

Finance Minister Cassiel Ato Forson said during his budget speech in March that steep spending cuts would allow Ghana to drive down inflation to 11.9% by the end of the year.

Advertisement

(Reporting by Emmanuel Bruce and Christian Akorlie; Writing by Anait Miridzhanian; Editing by Bate Felix)