Ghana inflation reaches new high of 40.4% in October

Small businesses closed their doors for several days last month to protest rising costs. The central bank has hiked its main lending rate by 10 percentage points since the start of the year in attempt to hold back inflation and slow the cedi's depreciation.

Ghana's consumer inflation reached a new 21-year high of 40.4% year on year in October, up from 37.2% in September, the statistics service said on Wednesday, after a month of rapid currency depreciation deepened an economic crisis.

Ghana's cedi had one of its worst months on record in October and has lost around half its value against the dollar in 2022. It has been Africa's worst performing currency this year, according to the World Bank. More than a thousand demonstrators took to the streets of the capital Accra on Saturday to demand the president's resignation, as fuel and food prices continue to spiral. Small businesses closed their doors for several days last month to protest rising costs.

The central bank has hiked its main lending rate by 10 percentage points since the start of the year in attempt to hold back inflation and slow the cedi's depreciation. The next monetary policy meeting is slated for the end of this month.