Average consumer prices have risen to almost a 3-year high last month as the national year-on-year inflation rate rose for the sixth consecutive month to 12.2 percent in November 2021.
The rate is 1.2 percentage points higher than the 11.0 percent recorded in October 2021.
According to the Ghana Statistical Service (GSS), the hike in inflation in November was driven mainly by the ’Housing, Water, Electricity, Gas and other Fuels’ as well as the transport sub-divisions.
“Inflation hits ever highest level since rebasing in August 2019, surpassing rates recorded during the COVID-19 pandemic”.
Prof. Samuel Annim Kobina, Government Statistician
Month-on-month inflation which was stable at 0.6 percent in September and October rose to 1.4 percent in November, the highest recorded since July 2021. Last year, November recorded a month-on-month inflation rate of 0.3 percent whilst the annual inflation for the same month last year was 9.8 percent.
Food Inflation
Average food prices picked up strongly in November after declining marginally in October this year. The Consumer Price Index (CPI) Newsletter released by the GSS today, December 15, 2021 showed that food inflation was 13.1 percent in November, higher than both the 11.5 percent recorded in October and the average of the previous 12 months of 10.4 percent.
Consequently, Food inflation’s contribution to total inflation increased from 44.9 percent in October 2021 to 47.7 percent in November the same year. Overall, month-on-month food inflation was 2.1 percent, which is higher than the twelve-month national month-on-month rolling average of 1.0 percent, according to the GSS. All the 15 food subclasses recorded positive month-on-month inflation, with Vegetables recording the highest rate of 3.8 percent.
Non-Food Inflation
Non-food year-on-year inflation also increased by 0.6 percentage points in November, rising from 11.0 percent in October to 11.6 percent in November 2021. Only one out of the 12 Non-food Divisions had the 12 months rolling average to be higher than the year-on-year inflation for November 2021 with ‘Housing, Water, Electricity, Gas other fuels’ recording the highest inflation rate of 20.5 percent.
Regional inflation
At the regional level, the overall year-on-year inflation in November 2021 ranged from 2.7 percent in the Eastern Region to 17.2 percent in the Upper West Region. This means the Eastern Region registered a marginal increase in inflation in November compared to the 1.9 percent recorded in October. Upper West Region however, experienced a 2 percentage points decline compared to the 19.2 percent recorded in October 2021.
Greater Accra Region recorded the highest month-on-month inflation of 2.0 percent in November. All regions recorded positive month-on-month inflation rates with Upper East region recording the lowest rate of 0.3 percent.
Imported and Local Inflation
Inflation for imported goods rose for the second consecutive month in November to record 9.8 percent, higher than the 8.8 percent recorded in October this year.
Similarly, Inflation for locally produced items continue to rise since May this year, running counter to the country’s quest to encourage the patronage of made in Ghana products. According to the GSS, inflation for locally produced items rose to 13.0 percent in November, up from 11.8 percent in October. November’s local inflation is very much higher than the rates of 7.9 percent, 9.4 percent, 10.3 percent, and 11. 5 percent recorded in June, July, August and September 2021, respectively.
