Ghana’s Inflation Backpedals For First Time In Six Months

Ghana’s inflation rate dived in January, for the first time in six months. The inflation rate for the West African country rose from 23.2 percent in December 2023, to 23.5 percent in January 2024.

This increase has lowered the country’s chances of another rate cut and could result in a revision of economic projections.

• Ghana’s inflation rate rose to 23.5% in January 2024 from 23.2% in December 2023.
• Food inflation eased to 27.1%, while non-food prices surged to 20.5%.
• Finance Minister Ofori-Atta was dismissed amidst economic challenges and upcoming elections.

A report by media source shows that in the nation’s capital, Accra, on Tuesday, Government Statistician Samuel Kobina Annim reported that annual inflation had increased to 23.5% from 23.2% in December.

This inflation increase could result in the country’s central bank’s policymakers updating their projections to indicate a declining trend in inflation.

The group’s choice to halt the harshest phase of monetary tightening last month by lowering the benchmark rate to 29% from 30%, the first since July 2021, was driven by this projection.

“Food inflation cooled to 27.1% from 28.7% in December, while non-food price growth was 20.5% compared with 18.7%. The bank had predicted that inflation would end the year at between 13% and 17%, before gradually trending back to within its medium-term target range of 6% to 10% by 2025,” media’s report showed.

In December 2023, Ghana’s inflation dropped to 23.2%, a significant decline from the 26.4% reported in November 2023, which in turn raised hopes for rate cut.

However, the cedi has remained constant at 12.45 per dollar. Ghana’s 2032 dollar bonds declined for the fifth consecutive day following the publication of the data.

Additionally, in its fiance space, the Gold Coast’s president, Nana Akufo-Addo, dismissed the finance minister, Ofori-Atta, who had served in the position for 7 years, in place of Mohammed Amin Adam, the minister of state at the finance ministry.

This was a result of the country’s unfortunate economic situation in recent years and comes amidst preparations for the country’s next general elections.