Inflation shot up to 33.9% in August 2022, the highest in 21 years, data from the Ghana Statistical Service (GSS) has revealed.

This is expected to increase the cost of borrowing by raising interest rates further.

Relative to July 2022, year-on-year inflation increased by 2.2 percentage points in August 2022 and month-on-month inflation reduced by 2.2 percentage points over the same period.

On a monthly basis, the rate of inflation between July 2022 and August 2022 also went up  by 1.9%.

Once again, the drivers of the rate of inflation were Housing, water electricity, gas and other fuels (46.7%); Transport (45.7%); Furnishings, household equipment and routine household maintenance (44.7); Recreation, sport and culture (36.4%); Personal care, social protection and miscellaneous goods and services (36.0%) and Food and Non-Alcoholic Beverages (34.0%).

There was however wide disparity observed across the 13 divisions.

Food inflation in the month of August 2022 was 34.4%, compared with 32.3% the previous month.

Eight subclasses however recorded higher rates. This was distantly led by Oils and Fats (74.0%) followed by Fruits and Nuts (49.4%) and Fish and Other Seafood (46.4%).

In the case of month-on-month food inflation eight subclasses record rates higher than the national average (1.8%).

For non-food Inflation, it stood at 33.6% in August 2022, higher than the 31.3 % recorded in July 2022.

Inflation for locally produced items was 33.4%, whilst inflation for imported items was 35.2%.

For the fifth month in a row (since April 2022) imported items record higher inflation rates than locally produced items.

Eastern region recorded highest inflation rate

Meanwhile, the Eastern region recorded the highest inflation rate of 41%, followed closely by Western Region (40.2%) and Greater Accra Region (39.3%).

The Upper East region however recorded the lowest rate of 22.8%.

But Western Region recorded highest food inflation (47.0%) and Eastern Region, the highest non-food inflation (42.0%).