Projected: Ghana’s 2024 Inflation Set at 15.0%, Anticipates 8.0% in 2025

The IMF predicts Ghana’s inflation to be 15% by the end of 2024, with an anticipated 8.0% inflation rate in 2025, 2026, and 2027. This signals a slowdown in rising prices this year and a substantial reduction over the next three years, as outlined in the “Ghana: Selected Economic and Financial Indicators, 2022–28” report. In 2023, year-on-year inflation dropped by 30.4 percentage points, reaching 23.2% in December. In January 2023, Ghana’s inflation rate was 53.6%. The Ghana Statistical Service attributes the decline in overall inflation to a significant drop in food inflation, which decreased from 32.2% in November 2023 to 28.7% in December 2023. Non-food inflation also decreased from 21.7% to 18.7% during the same period. Locally produced items had a December 2023 inflation rate of 23.8%, while imported items recorded 21.9%. Notably, six divisions, including Alcoholic Beverages, Tobacco and Narcotics (38.2%), saw inflation rates higher than the national average. Other sectors with elevated rates included 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%).