Ghana's February Inflation Rate Rose For 2nd Month on Gasoline Price Jump

Ghana’s inflation rate rose in February for the second consecutive month as a 30 percent jump in gasoline costs at the beginning of the year pushed up transportation fees.

Inflation accelerated to 9.2 percent from 9.1 percent in January, Grace Bediako, head of the Ghana Statistical Service, told reporters today in the capital, Accra.

“With most of the upward pressure on inflation arising from the 30 percent fuel-price increase in the new year, February inflation should still be up,” Razia Khan, head of Africa research at Standard Chartered Bank Plc in London, said in an e-mailed note yesterday.

The pick-up in inflation is beginning to put pressure on the central bank to raise interest rates, Lisa Lewin, head of sub-Saharan Africa analysis at Business Monitor International, said in an e-mailed note yesterday. The acceleration may not be enough yet to push the Bank of Ghana to tighten monetary policy, she said.

“The rate at which inflation increases in February and March will however be the crucial determinants,” Lewin said.

The inflation rate had fallen from a five-year high of 20.7 percent in June 2009, enabling the central bank to cut its key interest rate by 4.5 percentage points last year. The last reduction in July took the rate to 13.5 percent from 15 percent.

The National Petroleum Authority increased gasoline prices on Jan. 4 following a rally in global oil prices.

“The impact of the increase in the fuel price may result in a continuous rise in inflation in the first quarter,” Bediako said in an interview on Jan. 26.

To contact the editor responsible for this story: Antony Sguazzin at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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