Ghana inflation rises to 31.7% in July, highest since 2003

Ghana's consumer inflation accelerated to 31.7% annually in July from 29.8% in June - its highest since late 2003, data showed on Wednesday, as the government's top statistician warned that it was not possible to say whether prices had peaked.

Ghana's consumer inflation accelerated to 31.7% annually in July from 29.8% in June - its highest since late 2003, data showed on Wednesday, as the government's top statistician warned that it was not possible to say whether prices had peaked. The central bank has raised its main lending rate by 550 basis points since November to try to rein in inflation. Data showed the pace at which it increased in July had slowed for the second month in a row.

But "it would be early days to say that inflation is peaking, and early days to say whether the month-to-month variation is truly slowing," government statistician Samuel Kobina Annim said at a news conference. Ghana's broader economic situation is also challenging. The cedi currency has depreciated around 30% this year and all three major credit rating agencies have downgraded Ghana's sovereign bonds into 'junk' status.

Unable to tap global capital markets, the gold- and cocoa-producing nation in July announced it would seek support from the International Monetary Fund as its balance-of-payments deteriorates.