Adnan Adams Mohammed
The Governor of the Bank of Ghana (BoG) has said the downward trend in inflation is a positive sign to restore macro-economic stability.
Dr. Ernest Addison, expressing confidence that as the progress continues, noted that, interest rates will correct and move in a favorable direction. He stressed the readiness to discuss the evolving numbers, including the projected year-end outlook of 29%, with the International Monetary Fund (IMF).
The Central Bank claimed that, the sustained reduction in inflation since August 2023 can be credited to the proactive efforts and measures it took to address hyper inflationary and restore macro-economic stability.
Ghana’s inflation rate has experienced a notable decline, surpassing the year-end target set by the Bank of Ghana (BoG).
The Ghana Statistical Service (GSS) reported that the country’s inflation rate dropped to 23.2% in December last year, marking the fifth consecutive decrease since August 2023. This achievement comes as a result of effective measures implemented by the BoG.
The BoG had initially set a year-end inflation target of 29% for 2023. However, the GSS data revealed a considerable drop, with food inflation decreasing to 28.7% in December 2023, compared to the 32.2% recorded in November. Non-food inflation also saw a decline, dropping to 18.7% in December from 21.7% in November.
Prof Samuel Kobina Annin, the government statistician, said the decrease in inflation was primarily attributed to declining rates in both food and non-food sectors. Specifically, food inflation decreased by 3.5 percentage points to 28.7%, and non-food inflation declined by 3.0 percentage points to 18.7% in December, compared to the previous month.
