Ghana’s inflation rate is projected to decline gradually but stay above the target range of 8±2% until 2025, according to a May 2023 Monetary Policy Report by the Bank of Ghana (BoG).
The report stated that the inflation outlook is mostly skewed to the downside, supported by the relative stability in the cedi exchange rate, lower fuel prices at the pump and base drift effects.
These factors could dampen upward adjustments in regulated prices of goods and services. Meanwhile, annual inflation has fallen significantly by 12.9 percentage points from December 2022 to April 2023.
“The share of items in the Consumer Price Index (CPI) basket with inflation exceeding 50% is declining, indicating a return to the disinflationary path. Core inflation has also decreased, further supporting the disinflation process,” the BoG report noted.