According to Ghana’s statistics service, the consumer inflation rate experienced a substantial decline from 35.6% in October to 26.4% in November, marking a notable 8.8% decrease compared to the previous month. The Ghanaian Statistician-General attributed this sharp drop, reaching a 19-month low, to favorable base-effect comparisons with the previous year and the central bank’s proactive implementation of monetary policy tightening.
The Bank of Ghana has maintained its benchmark policy rate at a historic high of 30% since July, signaling a pause after a cumulative tightening of 16.5 percentage points since November 2021. Officials emphasize their commitment to maintaining a tight policy stance until inflationary pressures are securely managed.
Earlier projections suggested that the inflation rate would conclude the year at 29%, showcasing a significant decrease from the peak of 54.1% recorded in December 2022.
The Ghana Statistics Service (GSS) attributes the sharp decline in the inflation rate to a drop in prices of food items such as vegetables, cereals, and fish.
The year-on-year food inflation stood at 32.2%, while the non-food inflation rate was 21.7% for November. In the latest report, the annual increase in the consumer price index reached 26.4%, following a 35.2% surge in October, as reported by government statistician Samuel Kobina Annim in Accra on Wednesday.
Despite this notable drop in inflation figures, Ghana finds itself amid its worst economic crisis in a generation. The nation is negotiating with multilateral lenders and creditors to restructure its debt.
In July of this year, year-on-year inflation reached 43.1%, leading to protests in the country’s capital over the high cost of living and the weakening of the Ghanaian Cedi. The Cedi lost about 11% of its value compared to the USD in the year’s first half.
Compounding the economic challenges, the government defaulted on its euro bond debt obligation last year.
