Ghana is expected to return to single-digit inflation by the first quarter of 2026, according to a revised forecast by IC Research. The research firm has pushed its prediction forward due to slower-than-expected disinflation and earlier currency pressures.

In its update, IC Research warned of potential risks to inflation in 2025, including external policy uncertainties that could affect exchange rates, energy, and food prices. However, the recent strengthening of the Ghanaian cedi is likely to ease price pressures into early 2025, potentially limiting further inflationary increases.

The Bank of Ghana’s inflation outlook is similarly cautious, forecasting a slightly elevated inflation rate but remaining optimistic about a return to single digits in the medium term.

In June 2024, IC Research raised its inflation forecast for 2024 to a range of 19.3% to 21.3%, highlighting the risk of overshooting the Bank of Ghana’s original target of 15.0%. As of November 2024, Ghana’s annual consumer inflation had risen to 23%, the highest since May, with food prices—particularly staples like beans and yams—driving much of the increase.

Source:TheDotNews