BoG Forecasts between 13-17% Inflation By End Of 2024
Ghana is envisioned to record an inflation rate between 13 and 17% by the end of this year.
The forecast by the Monetary Policy Committee (MPC) of the Bank of Ghana was announced by the Governor, Dr Ernest Addison in a press statement on Monday, January 29, 2024.
Ghana’s inflation currently stands at 23.2% down from 26.4% in November 2023 and the Bank forecasts further decline.
In 2023, the Bank notes that inflation declined by 30% due to the tightening monetary policy stance throughout 2023, favourable international crude oil prices which led to stable ex-pump prices and transportation costs, and relative stability in the exchange rate.
“The latest forecast suggests that the disinflation process will continue, and headline inflation is expected to ease to around 13-17 per cent by the end of 2024.”
It said Ghana will witness an inflation rate hovering around 6-10 per cent by 2025.
That notwithstanding, it warned that “there are upside risks to the inflation outlook and there is a need for strict implementation of the 2024 budget and a tight monetary policy stance to sustain the disinflation process”.
It has thus pegged the policy rate at 29%.
Ghana’s inflation is driven by food products and imported goods. Even when inflation began to ease late 2023, food and imported good had their rates exceeding the national average.
