Minister of Finance, Ken Ofori-Atta, has recounted harsh inflation in 2022 that disrupted the government’s efforts towards growth.
December 2022 recorded the highest inflation figure of 54.1% due to a sharp increase in food, fuel prices and exchange rate depreciation.
Delivering the Budget Statement and Economic Policy of the Government and Supplementary Estimates for the 2023 Financial Year to Parliament on Monday, July 31, Mr Ofori-Atta, said:
“Our country, like many others globally, experienced unusually sharp increases in food, fertiliser and fuel prices, rising inflation and exchange rate depreciation, leading to severe economic challenges and hardships for the people. A headline in the December 2022 edition of The Economist captured the global situation in these words: “2022 has been a year of brutal inflation,” Mr Ofori-Atta said.
High inflation disrupts economic growth and is a disincentive to investors.
Additionally, high inflation is likely to compel the central bank to hike its Monetary Policy Rate (MPR), which affects borrowing by investors to expand business operations and increase growth.
Even though the government had wished for favourable conditions, inflation did not favour Ghana.
The country recorded record-high inflation of 54.1 per cent in December 2022, but inflation was tamed in 2023, with the current figure at 42.5% for June 2023.
February -15.7%
March- 19.4%
April – 23.6%
May – 30.1%
June – 29.8%
July- 32.3 %
August – 34.4 %
September – 37.2%
October – 40.4%
November – 50.3%
December – 54.1%