Ghana’s inflation would be on average 20% in 2023 – EIU

Ghana’s inflation rate is expected to be 20% on average in 2023, according to the Economist Intelligence Unit’s (EIU) 2023 Africa Economic Outlook Report.

With the greatest inflation rate on the continent, this places the nation in fifth place.

However, it forecasted an inflation rate of 32% on average in 2022.

With an average inflation rate of 50% in 2023, Zimbabwe and Sudan are anticipated to rank first and second, respectively, in Africa.

Ethiopia (31.5%) and Sierra Leone (23%) are expected to be ranked 3rd and 5th respectively.

Malawi (18%), Angola (13.3%), Burkina Faso (13.2%), Nigeria (13.1) and Burundi (12.5%) are also expected to place 6th, 7th, 8th, 9th and 10th respectively on the African continent.

UK based, EIU said annual average consumer price inflation will be in double digits for about 42% of African states in 2022 and elevated price pressures have become problematic for governments, businesses and households across the continent.

“Price pressures will remain high but ease back in 2023 in all African states except Zimbabwe, partly as a result of monetary policy adjustments and softer commodity prices”, it pointed out.

To combat inflation and relieve pressure on exchange rates, about two-thirds of African governments raised their domestic policy interest rates in 2022, and the majority of Africa will do so again in 2023.

“African governments will need to tread carefully to preserve weak consumer and corporate confidence and to prevent jeopardising prospects for short- to medium-term economic growth. Ghana, Ethiopia, Egypt, South Africa, and Zimbabwe are likely to have policymakers who are most affected by the urgent need to tighten monetary policy, it concluded.

Inflation jumps to 50.3% in November 2022, highest in 27 years

In November 2022, inflation increased by 9.9% to reach 50.3%, according to the most recent data from the Ghana Statistical Service.

The number is now the highest in 27 years.

The rise was anticipated due to rising fuel costs and the cedi’s depreciation throughout the course of the reviewed month.

Source: Ekow Coffie