Ghana’s Inflation Set for Further Relief in April – Experts Predicts
Analysts predict a continued slowdown in inflation, driven by stable fuel prices and improved food supply, but warn of potential risks from future monetary policy decisions
- Inflation in Ghana is expected to ease to 21.8% in April
- Stable fuel prices and improved food supply conditions are key drivers of the slowdown
- The continuation of this trend depends on cautious monetary policy decisions
Market analysts are predicting that Ghana’s inflation rate will continue to ease in April, potentially dropping to 21.8% year-on-year.
This slowdown is attributed to the stability in fuel prices and a more stable cedi. This follows a reduction in inflation to 22.4% in March.
Databank Research’s report highlights that the trend of easing inflation is expected to persist, largely driven by better food supply conditions.
However, the report also warns that the sustainability of this downward trend will depend heavily on future monetary policy decisions.
The analysis specifically cautions against any premature interest rate cuts, particularly at the upcoming May 2025 meeting, as such a move could undo the progress made so far.
This is despite the recent rise in the policy rate to 28% in March.
