Ghana’s economy may continue experiencing high rates of inflation for the rest of the year but should expect single-digit inflation rates to be experienced in the year 2023 according to the Governor of the Bank of Ghana, Dr. Ernest Addison.
Data released by the Ghana Statistical Service showed that inflation for the month of April was 23.6% from 19.4% in March, the highest since 2004.
This figure is almost triple the rate projected by the Bank of Ghana.
Speaking during a press conference by the Monetary Policy Committee on May 23, he stated that even though prices of food, transportation, and other drivers of inflation keep increasing, he expects the rate of increase to taper off soon.
“We do not expect another jump in the headline inflation rate similar to what we had seen in April. So, it’s not so much a question of peaking but the rate of increases, in inflation we expect to taper off. We are very much aware of what is on the horizon regarding utility prices and transportation prices and all that, but I don’t think those will even justify the kind of jump we have seen.”
On whether a single-digit inflation rate will be recorded anytime soon, the Governor noted that Ghanaians will have to wait till 2023 to see the rate drop to within the medium-term target band of 8+/-2%.
“If you look at our inflation forecast profile, we expect that inflation will get back into our target zone sometime in 2023. It means that you will still see heightened inflation rates between now and then. Pressures will only fade out gradually. It is a difficult time for all of us. It affects the poorest the most. This is why the MPC (monetary policy committee) had taken the decision to decisively do all that we can to bring it down as quickly as possible.”
Meanwhile, the BoG has revised the Monetary Policy Rate to 19% from an earlier 17%.
Inflation rises to 23.6%