According to the Ghana Statistical Service, year-on-year inflation fell to 41.2% in April 2023 from 45% in March 2023. The decline in inflation could compel the Bank of Ghana to keep its policy rate unchanged at 29.5% when the Monetary Policy Committee begins its 112th Meeting on May 17, 2023.
Ghana’s year-on-year inflation rate fell for the fourth consecutive month in April 2023, according to data from the Ghana Statistical Service. The rate fell to 41.2% from 45% in March 2023, extending the disinflation process that began in January 2023. Both food and non-food inflation dipped last month, with food inflation falling to 48.7% from 50.8% and non-food inflation declining to 35.4% from 40.6%.
The decline in inflation could compel the Bank of Ghana to keep its policy rate unchanged at 29.5% when the Monetary Policy Committee begins its 112th Meeting on May 17, 2023. However, despite this decline, the cost of credit remains expensive as average lending rates hover around 35%.
