Market analysts are optimistic about Ghana’s inflation outlook, projecting a further decline to 21.8% year-on-year in April. This expected easing is attributed to relatively stable fuel prices and a stronger cedi, signaling some economic stability.
The forecast follows March’s inflation rate, which moderated to 22.4%, marking a continued downward trend in consumer price growth.
A report from Databank Research highlights that improved food supply dynamics have played a pivotal role in driving the disinflation trend. The report expresses confidence in these factors sustaining inflation’s decline in the short term.
However, the broader economic outlook remains cautious. The report emphasizes that monetary policy decisions will be critical to maintaining this momentum. It warns that any premature cuts to the interest rate—currently at 28%, following an increase in March—could undermine recent gains.
With the Bank of Ghana’s monetary policy committee set to meet in May 2025, all eyes are on their next move, as it could significantly influence the trajectory of inflation in the coming months.
As Ghana navigates these economic challenges, the focus remains on ensuring sustained stability and growth. The balance between maintaining disinflation and fostering economic activity will likely shape the nation’s fiscal and monetary policy strategies.
Story by: Mercy Addai Turkson #ahotoronline.com
