Ghana’s annual consumer price inflation rose to a four-year high of 15% in June from 14.8% in May, the West African nation’s statistics office said on Wednesday.
The rise pushed the rate further past Ghana’s 2014 target of 9.5% plus or minus 2% set in November’s annual budget. The oil, gold and cocoa-producing West African nation has a rapid growth rate but is struggling to stabilize its economy.
The main inflation drivers were the housing, water, electricity, gas and other fuels category, which recorded an annual rate of 53.6%, said government statistician Philomena Nyarko. The government cut fuel and utilities subsidies last year.
Transport costs rose 24.6%t, and prices of mineral water, soft drinks and fruit juices rose 21.7%.
Ghana has experienced five years of rapid economic growth but its currency has fallen around 30% this year versus the dollar and it is also wrestling with a stubbornly high budget deficit.
Is this another case of the “Oil Curse”?