Ghana’s Inflation to Drop to 8.0% in 2025, Says IMF

In a recent revelation, the International Monetary Fund (IMF) has predicted a notable 15% end-of-year inflation for Ghana in 2024.

The forecast extends to 2025, 2026, and 2027, with an anticipated 8.0% inflation rate for each of these years. These projections, unveiled in the IMF’s latest document titled “Ghana: Selected Economic and Financial Indicators, 2022–28,” indicate a significant slowdown in the increasing prices of goods and services, particularly in the coming years.

Ghana witnessed a remarkable year-on-year inflation decrease of 30.4 percentage points in 2023, dropping from 53.6% in January to 23.2% in December 2023.

This decline is attributed to the performance of both food and non-food inflation. According to data from the Ghana Statistical Service, food inflation contributed significantly to the overall decrease, registering a rate of 28.7% in December 2023 compared to 32.2% in November 2023. Non-food inflation also saw a decline, decreasing to 18.7% in December 2023 from 21.7% in the previous month.

The breakdown of inflation for locally produced and imported items reveals that locally produced items maintained a slightly higher inflation rate at 23.8% in December 2023, while imported items stood at 21.9%.

Six specific divisions recorded inflation rates surpassing the national average. These include Alcoholic Beverages, Tobacco, and Narcotics (38.2%); Personal Care, Social Protection, and Miscellaneous Goods and Services (31.1%); Food and Non-Alcoholic Beverages (28.7%); Restaurants and Accommodation Services (28.0%); Furnishings, Household Equipment, and Routine Household Maintenance (26.9%); and Recreation, Sports, and Culture (24.9%).

As Ghana navigates its economic landscape, the IMF’s predictions signal a positive trajectory, offering hope for a more stable and controlled inflation rate in the coming years.

The detailed analysis of inflation across various sectors provides valuable insights into the factors influencing Ghana’s economic resilience and consumer prices.