Business & Finance

BoG: Inflation Will Peak In 2023

The Bank of Ghana (BoG) has forecasted inflation rate will continue to surge until late 2023.

This was relayed after the 109th Monetary Policy Committee (MPC) Meeting in November.

Currently, inflation stands at 40.4%.

This, according to the BoG, will surge further and peak in the first quarter of 2023 and then settle in late 2023.

“The inflation forecast shows that in the outlook, inflation will likely peak in the first quarter of 2023 and settle at around 25 per cent by the end of 2023.”

The forecast, the Central Bank said, is conditioned on the continued maintenance of a tight monetary policy stance and the deployment of tools to contain excess liquidity in the economy.

It added, “There are, however, some risks to this forecast that would have to be monitored, including additional pressures from the proposed VAT increase, and exchange rate pressures. Continued vigilance to the evolution of these potential price pressures in the outlook will be key.”

The October 2022 inflation was driven by housing, water, electricity, gas, and other fuels (69.6%); furnishings, household equipment and routine household maintenance (55.7%); transport fares (46.3%); food and non-alcoholic beverages (43.7%); personal care, social protection and miscellaneous goods and services (45.5%).

The Central has increased the Monetary Policy rate to 27% to dampen inflation.

Source: FUseini

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