Former President and flagbearer of the National Democratic Congress John Mahama has asked Vice President Dr Mahamudu Bawumia five questions, who is also contesting for president in the 2024 elections.
John Mahama asked the Vice President and the head of the government’s Economic Management Team, why the country’s inflation rate rose to 54%.
“Why did inflation rise to its highest in the 4th Republic of 54% under your watch as EMT chair,” he queried.
Indeed, in December 2022, Ghana’s inflation rose to 54.1%. However, is that the highest in the fourth republic?
Verification
The Bank of Ghana provides historical data on Ghana’s inflation. Since the fourth republic was born in 1993, we have monitored Ghana’s inflation rate.
DUBAWA Ghana observed that in May 1995, Ghana’s inflation hit 56.12%. The rate continued going up for the rest of the year, peaking at 70.82% in December before falling slightly to 69.20% in January 1996.
It was not until June 1996 that Ghana’s inflation dropped to 48.42%, lower than the 54.1% inflation recorded in December 2022.
Below is the Bank of Ghana data showing inflation rates between 1992 and 1996.
The International Monetary Fund also provides historical data about Ghana’s inflation trend. Their data is an annual average instead of the month-by-month presentation by the Bank of Ghana. According to their data, Ghana’s inflation increased by 59.3% on average in 1995, which is also higher than the 54.1% recorded in 2022.
Conclusion
Ghana’s December 2022 inflation of 54.1% is not the highest in the fourth republic. Between May 1995 and May 1996, Ghana recorded inflation rates higher than the 54.1% attained in December 2022.