Ghana’s annual consumer inflation has reached a 231-year high of 50.3% in November. This is up 40.4% from October and the increase was driven by utilities, food and fuel price increases. The West African nation secured a staff-level agreement with the International Monetary Fund for a $3bn, three-year support package on Tuesday. Ghana had approached the IMF in July to ask for financial help.
The country produces gold, oil and cocoa but is battling its wroth economic crisis in a generation. The local currency is approximately 40% against the dollar and traded at all-time low in November before rallying slightly due to the IMF deal. Spending cuts and several central bank interest rate hikes have so far failed to control the inflation. TThe country has started restructuring its domestic debt and is discussing a strategy to do the same with its external debt. Costs rose 79.1 percent in the category of housing, water, gas and electricity. Transport, including fuel, increased by 63.1 percent, however Petrol prices have fallen in December as the cedi has strengthened, which could relieve some inflationary pressure from the transport category in December.