Interest rates and cost of borrowing are expected to return to go up, following the increase in inflation.
This is expected to increase the cost of doing business in the country.
Inflation for May shot up marginally to 42.2% from 41.2 % recorded in April 2023.
The marginal increase was largely influenced by Food Inflation (51.8%) during the period.
According to data from the Ghana Statistical Service, food inflation rose from 48.7% in April 2023 to 51.8% in May 2023.
However, non-food inflation fell to 34.6% in May 2023, from 35.4% in April 2023.
Inflation for locally produced items was 36.2%, whilst inflation for imported items was 43.8%.
From the data, four groups recorded inflation rates higher than the national average.
They were Furnishing and Households Equipment (57.8%); Housing, Water, Electricity, Gas and Other Fuels (54.0%); Personal Care, Social Protection and Miscellaneous Services (53.4%) and Food and Non-Alcoholic Beverages (51.8%).
Six food groups record high inflation
Tea and related products (114.8%), Fish and other seafood (62.9%) and Cereals and other cereal products (62.0%) place first, second and third with the highest inflation in the food group.
They were followed by Milk, other dairy products and eggs (59.2%); Sugar, confectionary and desserts (58.8%) and Fruit and Vegetable juices (57.1%)
Ashanti region recorded lowest inflation in May 2023
For the regions, the Ashanti region recorded the lowest inflation of 31%, while the Western North region recorded the highest inflation of 62.5%.