Ghana’s inflation rate has risen for the second consecutive month, reaching 22.1% in October 2024, according to the latest figures released by the Ghana Statistical Service. This marks a 0.6 percentage point increase from September’s 21.5%, further complicating the country’s efforts to meet its inflation targets for the year.

After peaking at 25.8% in March 2024, Ghana’s inflation rate had been on a downward trajectory for four months, with both the central bank and the finance ministry projecting that inflation could fall to around 15% by the end of the year. However, the recent uptick in inflation has raised concerns that the country may not be able to meet this target.

On a monthly basis, the price of goods and services rose by 0.9% between September and October, a noticeable drop from the 2.8% increase recorded the previous month. While the month-on-month inflation rate has slowed, the overall trend still points to persistent inflationary pressures in the economy.

The rise in inflation is driven by both food and non-food sectors. Food inflation increased from 22.1% in September to 22.8% in October, while non-food inflation saw a similar uptick, rising from 20.9% to 21.5%. Key sectors contributing to the inflation spike include alcoholic beverages and narcotics, household water, electricity and gas, fuels, and restaurant and accommodation services, all of which recorded inflation rates significantly higher than the national average.

The continued increase in the cost of utilities and fuel, in particular, is likely to put additional strain on household budgets and contribute to ongoing economic challenges. Analysts suggest that these persistent price increases could dampen consumer spending and slow economic growth if sustained into the coming months.

With the latest inflation figures showing a slower-than-expected decline, it now seems increasingly unlikely that Ghana will achieve its goal of reducing inflation to below 20% by the end of 2024. Economists are now revising their forecasts, with many predicting that inflation may remain elevated into the new year, possibly reaching more manageable levels by mid-2025.