Ghana's Inflation Rate Rise to 4-year High as Cedis Continues to Weaken



Ghana's inflation rose to a four-year high of 14.8 per cent in May from 14.7 per cent in April fuelled by a weakening currency, the nation's statistics office said on Wednesday.

The rise in its annual consumer price is less than the 15 per cent forecast in a media poll.

The rise still pushes the rate further beyond the 2014 target of 9.5 per cent, plus or minus two percentage points, set in November's annual budget.

Ghana is battling with a stubborn budget deficit, high bond yields and a cedi currency that has depreciated 28 per cent this year.

The fiscal problems have muted an economy feted for five years of gross domestic product growth above eight per cent in spite of its exports of gold, cocoa and oil.

"The main price drivers for May were housing, water, electricity, gas, other fuels and transport," government statistician Philomena Nyarko, told a news conference.

"The depreciation of the cedi has affected imported goods under the non-food sector.

`` There is some impact, especially on the price of hair products, wine and emulsion paint which went up significantly in May," she said.