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Ghana’s Consumer Price Index (CPI) rose marginally in August after falling for two consecutive months, according to a statement from the Ghana Statistical Service on Wednesday. The West African country’s inflation rate rose to 16.9 per cent last month from 16.7 per cent recorded in July.

Food inflation rose to 8.5 per cent in August from 8.6 per cent in the previous month. Six subgroups of the food and non-alcoholic beverages group recorded inflation rates higher than the group’s average rate of 8.5 per cent. The subgroups are vegetables; mineral water, soft drinks, etc.; oils and fats; coffee, tea and cocoa; meat and meat products; and fruits.

Non-food inflation stood at 21.5 per cent last month, compared with 21.2 per cent in the penultimate month. Six subgroups of the non-food group recorded higher inflation rates compared to the group’s average rate of 21.5 per cent. The subgroups being education; housing, water, electricity, etc.; transport; recreation and culture; furnishings and household equipment; clothing and footwear.

Ghana's inflation rate had steadily dropped from 18.9 per cent in May to 16.7 per cent in July, before the moderate increase in August. In June, the Bank of Ghana retained its benchmark interest rate at 26 per cent, stating that the risks to inflation and growth were balanced despite increase in the prices of petroleum products.

In November, Ghana will head to the polls with President John Dramani Mahama vying for a second term in office. Last year, the country began implementation of a $1 billion three-year International Monetary Fund programme designed to tackle the falling cedi, rising inflation, and high public debt.