Consumer inflation slows in May to lowest level since February 2022

Consumer inflation slowed in May for the fifth consecutive month. It reached its lowest level since February 2022, according to the statistics agency.

Inflation dropped to 18.4% year-on-year in May. This is down from 21.2% in April, said government statistician Alhassan Iddrisu at a news conference. He added that disinflation is expected to continue in the coming months.

Iddrisu noted that the current inflation trend shows sustained deceleration. Food prices remain a key driver of inflation. However, a sharper drop in non-food inflation indicates broad-based easing across the economy.

He attributed this trend to effective monetary and fiscal measures. The recent appreciation of the Cedi against major currencies also played a role. Favorable external price dynamics and positive market sentiment contributed as well.

Producer price inflation slowed to 18.5% in April, down from 24.4% in March.

Last month, the Bank of Ghana kept its main interest rate steady at 28%. They maintained a tight monetary stance due to ongoing inflationary pressures.

Ghana continues to face "uncomfortably high" inflation levels. Current rates are well above the central bank's target of 8%, with a margin of error of 2 percentage points.

The country is recovering from its worst economic crisis in decades, affecting cocoa and gold sectors.

Finance Minister Cassiel Ato Forson stated that sharp spending cuts will help reduce inflation to