Ghana's inflation projected to remain above 10% until 2025 – BoG report

Inflationary figures for Ghana are expected to ease downwards but will remain above upper band of 8±2% until the end of 2025, a Bank of Ghana Monetary Policy Report for May 2023 has said.

According to the report, risks to the country’s inflation outlook are fairly titled towards the downside which is supported by the relative stability in the exchange rate, drop in ex-pump petroleum prices and base drift effects.

The development, the report suggested, could mute upward adjustments in administrative prices of goods and services.

Meanwhile, headline inflation has dropped significantly by 12.9 percent between December 2022 and April 2023.

“The percentage of items in the Consumer Price Index (CPI) basket with inflation exceeding 50% is receding, an indication of a return to the disinflationary path. Core inflation has also trended downwards, further supporting the disinflation process,” the BoG report noted.

Most recently, the Ghana Statistical Service announced that Ghana’s inflation rate for May 2023 increased slightly to 42.2 percent.

The Central Bank on its part believes that the recent forecast suggest that the country is heading toward a disinflationary path supported by the tightening of monetary policies, exchange rate stability among others.

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