The persistent rise in inflation in Ghana and Nigeria is expected to hamper economic growth, according to Deloitte West Africa’s November 2024 Inflation Update.

The professional services firm highlighted that rising inflation is increasing costs for businesses while reducing consumer spending, deepening the ongoing cost of living crisis.

In Ghana, inflation climbed for the third consecutive month, reaching 23%, mainly driven by higher food prices and increased spending ahead of elections. Similarly, Nigeria’s headline inflation increased to 34.6%, reflecting surging costs of goods and services.

Deloitte further warned that spending during the Christmas season is likely to push inflation even higher in December 2024.

The Economist Intelligence Unit (EIU) forecasts that Ghana’s inflation will average 22.4% in 2024, while Nigeria’s will stand at 33.2%. By 2025, inflation rates in both countries are projected to decline to 15.2% for Ghana and 27.7% for Nigeria, supported by improvements in foreign exchange stability, favorable trade policies, and base effects.

For Ghana, the November 2024 inflation increase was mainly influenced by five key sectors. Leading the list were Alcoholic Beverages, Tobacco, and Narcotics (30.0%), followed by Housing, Water, Gas, and Electricity (29.2%), and Health (22.2%).

Source: TheDotNews