Ghana to end 2024 with 15.0% inflation rate, 8.0% in 2025

The International Monetary Fund (IMF) is projecting a year-end inflation rate of 15% for 2024, and it anticipates an 8.0% inflation rate at the end of 2025, 2026, and 2027.

This suggests a deceleration in the rising prices of goods and services this year and a substantial reduction over the next three years.

These insights are detailed in the IMF's latest document titled "Ghana: Selected Economic and Financial Indicators, 2022–28."

In 2023, year-on-year inflation experienced a notable decline by 30.4 percentage points, reaching 23.2% in December.

In January 2023, Ghana's inflation rate was recorded at 53.6%.

The Ghana Statistical Service reported that food inflation played a significant role in driving down overall inflation, registering a rate of 28.7% in December 2023, compared to 32.2% in November 2023. Non-food inflation also decreased to 18.7% in December 2023 from 21.7% in November 2023.

Breaking down inflation further, locally produced items saw an inflation rate of 23.8% in December 2023, while imported items recorded 21.9%.

Six divisions recorded inflation rates higher than the national average, including Alcoholic Beverages, Tobacco and Narcotics (38.2%); Personal Care, Social Protection, and Miscellaneous Goods and Services (31.1%); Food and Non-Alcoholic Beverages (28.7%); Restaurants and Accommodation Services (28.0%); Furnishings, Household Equipment, and Routine Household Maintenance (26.9%); and Recreation, Sports, and Culture (24.9%).