Ghana’s economy, one month into its current administration under its new president, John Mahama, has recorded some marginal gains, specifically in its inflation rate.
- Ghana’s consumer inflation decreased from 23.8% in December to 23.5% in January year-over-year.
- Slowing in non-food inflation contributed to the decline while food prices continue to rise.
- The inflation rate of 23.5% is the second highest in the last nine months.
According to Ghana’s statistics office, the country’s consumer inflation, decreased marginally from 23.8% in December to 23.5% in January year-over-year.
Samuel Kobina Annim, a government statistician for the West African Gold Coast, disclosed to the media during a press conference that the decline was brought on by a slowing in non-food inflation, as reported by Reuters.
However, food prices are still on the rise. “Although the rate of inflation has slowed down by 0.3 percentage points, the figure of 23.5% is the second highest in the last nine months,” Annim stated.
Prior to this decline, Ghana’s inflation rate had risen for the fourth straight month leading up to its December figures.
The country’s current rate although a little lower than the previous month, is slightly higher than November’s figure, which came in at 23.0%.
A month later, Ghana recorded its third-highest inflation rate in the previous 13 months and the highest in the last eight months.
Given the West African country’s current inflation rate, which highlights the country’s worst economic cries in a generation, the figure remains significantly over the Bank of Ghana’s 8% objective, with a margin of error of two percentage points on each side.
The West African country of Ghana which thrives from the sale of cocoa and gold, is experiencing its greatest economic crisis in decades.
People have been finding it more difficult to pay for their everyday necessities as a result of these problems.
This issue and the declining value of Ghana’s currency, the Cedi, are the two main issues that their new president, John Dramani Mahama, who recently began his second term, has pledged to address.
Recently, it was reported that Ghana, for a second month, had decided to retain its interest rate, as it attempts to mitigate inflationary pressures.
This move was made in expectation of lower pricing pressures as the country’s new leadership tightens budgetary policy.
Ernest Addison, the governor of Ghana’s central bank, told reporters during a press briefing in the capital, Accra, on the 27th of January that the monetary policy committee kept the rate at 27%.
