Accessibility links

Breaking News

Ghana December Inflation 54%

FILE: A vendor sorts tomatoes at the Agbogboloshie food market in Accra, Ghana. Uploaded May 8, 2012

December's inflation reading is the highest since April 2001, when it was at 59.7%.

Prices rose the most in the category of housing, water, eletricity, gas and other fuels, up 82.34% year-on-year.

Furnishings and household equipment came second at 71.52%, followed by transport at 71.42%. Food and non-alcoholic beverages inflation was at 59.71% year-on-year.

The West African gold, oil and cocoa producer is battling its worst economic crisis in a generation.

Its cedi currency slumped last year, fueling inflation, as government spending cuts and central bank interest rate hikes failed to tame price rises.

Ghana approached the International Monetary Fund (IMF) in July to ask for financial help after soaring prices and economic hardship spurred street protests.

A staff-level agreement with the IMF for a $3 billion, three-year support package was secured in December. Debt restructuring is a condition to access the funds.

The government has launched a domestic debt exchange program, and said earlier on Wednesday that negotiations with local pension funds on the terms were ongoing.

It also asked to restructure its bilateral debt under the G20 common framework platform on Tuesday.