Ghana inflation rises for second month, hits 5.2% in September

Ghana's inflation rate climbed to 5.2% in September, marking a second consecutive month of increase, according to government figures released on Wednesday. The annual rate rose from 5% in August as service price pressures intensified, with the government statistician attributing the surge to services and domestically produced goods.

Alhassan Iddrisu, the government statistician, revealed the inflation data to reporters in Accra, suggesting that the upward trend in consumer prices could prompt the Bank of Ghana to hold its policy rate steady at 14%. The central bank had recently reduced its easing cycle, which had previously brought the benchmark rate down from a peak of 28% the previous year.

The September reading indicates that the downward trend in inflation observed earlier in the year has weakened, and the recent uptick in consumer prices may further bolster the central bank's stance to maintain the current rate. The data reflects a modest rise in the headline inflation rate but suggests that the momentum of the downward trend has diminished.

Inflation pressures have been particularly pronounced in the services sector, which experienced a slight easing on an annual basis but showed an accelerating monthly pace. The central bank's preference to keep the policy rate unchanged may be influenced by the renewed price pressures observed in the September data.