Ghana’s inflation is expected to end 2024 at 23.2%, the World Bank has disclosed in its October 2024 Africa Pulse Report.
The year-on-year inflation is however expected to take a nose dive to 11.5% in 2025.
This would help drive down interest rates and cost of borrowing.
According to the report, inflation in Sub-Saharan Africa is projected to decline from 7.1% in 2023 to 4.8% in 2024 and 4.6% n 2025–26.
“Stabilisation of commodity prices this year after the decline from their highs in 2022, the alleviation of supply chain disruptions, the effects of tightened monetary and fiscal policies, as well as stabilizing currencies explain the decline of inflation in the region”, it mentioned.
It added that the slowdown of inflation appears to be broad-based across the region.
About 70% of the countries are set to register lower inflation in 2024, compared to the previous year. This proportion will reach nearly 80% in 2025.
However, in three-quarters of the countries in the region, inflation rates are expected to be higher than they were during the pre-pandemic period.
The dynamics of disinflation in Sub-Saharan Africa distinguish two groups of countries— namely, low- and high-inflation countries.
Most countries exhibit low and declining inflation rates, while about 30% of the countries have a high rate of inflation that has already peaked or is still increasing.
Credit: Joy Business