Ghana Inflation Rises as US-Iran Conflict Spikes Oil Prices

Ghana's annual inflation rate increased to 5% in August, rising from 4.6% in July. Government Statistician Alhassan Iddrisu attributed the spike to homegrown factors, specifically costs associated with housing, water, energy, and transport. The Bank of Ghana is expected to maintain its policy rate at 14% during its September 24 meeting to counter these pressures.

The economic shift coincides with an intensification of military conflict between the United States and Iran over control of the Strait of Hormuz. The United States Armed Forces conducted strikes against Iranian radar and mine-laying systems, while Iran retaliated with drone and missile attacks on U.S. bases in Kuwait, Jordan, Bahrain, Iraq, and the United Arab Emirates.

President Donald Trump approved a tanker-for-tanker policy, authorizing attacks on Iranian tankers. These tensions pushed Brent crude prices above $97 a barrel, contributing to the rising utility and transport costs in Ghana. U.S. Treasury Secretary Scott Bessent has vowed an economic onslaught against Iran, while the U.S. military continues to target the Islamic Revolutionary Guards Corps Research and Self-Sufficiency Jihad Organization for its attempts to attack commercial shipping.