
Audio By Carbonatix
Inflation will end this year at an average rate of 8.5%, according to Fitch Solutions, research arm of ratings agency, Fitch.
This will probably come as a good omen for the economy as average change in prices of goods and services within a period will remain lower than expected.
It will as a result help consumers and businesses plan effectively since their disposable income and budget will not be eroded by the anticipated stable inflation.
Additionally, a consistent lower and steady inflation plus other improve economic indicators may compel the Bank of Ghana to reduce its policy rate-the rate at which it lends to commercial banks.
This accordingly could push lending rate or cost of credit slightly down. Liquidity, consumer and business spending will subsequently boosted.
Senior Country Risk Analyst for Sub Saharan Africa at Fitch Solutions, William Atwell told Joy Business “inflation has been elevated during the second half of last year and that certainly put a bit of downward pressure on household spending power.”
However, “looking ahead to this year, we expect inflation to average around 8.5%, which is lower than the final months of last year. That’s is going to support household income”, he emphasized.
Inflation hovered around 9-10% in 2020
Inflation remained within the 9 and 10% bracket for the greater part of last year.
According to the Ghana Statistical Service, Financial Services (1.7%); Recreation, Sports and Culture (0.2%) and Education Services (4.9%) inflation remained very low in 2020.
Inflation actually ended the year 2020 at a rate of 10.4%, a marginal increase over that of November 2020.
Latest Stories
-
EducationUSA College Fair 2026 to offer Ghanaian students first-hand guide to U.S university admissions
7 minutes -
PBL welcomes new UCC Vice Chancellor, strengthening lasting partnership
15 minutes -
Global pressures weigh on cedi as US dollar strengthens – BoG
16 minutes -
BoG flags external-sector pressures ahead of MPC decision
25 minutes -
EducationUSA urges students to look beyond academic scholarships
30 minutes -
White House to roll out the red carpet for historic Xi Jinping visit
36 minutes -
Reports of violence against women in Gaza surge, UN agency finds
37 minutes -
Banks should mobilise $10bn for medium and large-scale farming – Kojo Akoto Boateng
38 minutes -
Trump administration accuses banned media outlets of ‘falsehoods’ ahead of court hearing
59 minutes -
US and Iran hold first talks since June after Trump’s ‘annihilation’ threat at UN
1 hour -
More than 170,000 respiratory cases recorded in haze-choked Indonesia
1 hour -
UK to review Chagos Islands deal over lack of US support, Streeting tells BBC
1 hour -
BoG weighs on rising inflation risks as inflation climbs to 5%
1 hour -
AFCON 2027Q: Kurt Okraku backs ‘good enough’ Black Stars to fight for Ghana
1 hour -
Debt financing, expenditure are key risks to liquidity, exchange rate – BoG
1 hour