The Bank of Ghana expects the disinflation process to continue to ensure that headline inflation returns to the target in the medium-term.

However, it cautions against risks to the disinflation path which include increased utility tariffs and volatility in commodity prices, especially, crude oil prices.

“The disinflation process is expected to continue to ensure that headline inflation returns to target in the medium-term. However, risks to the disinflation path include increased utility tariffs and volatility in commodity prices, especially, crude oil prices”.

“These risks to the inflation outlook will be moderated by the tight monetary policy, relative stability in the local currency, and some base drift effects”, it said in the September 2023 Monetary Policy Report.

The Central Bank added that headline inflation has declined by a cumulative 14.0% since the peak of 54.1% recorded in December 2022.

Non-food inflation has also declined sharply by close to 20%, broadly reflecting the effectiveness of monetary policy.

“All the Banks’ measures of core inflation are on a downward trend, indicating continued easing of underlying inflationary pressures. In addition, one-year ahead survey-based inflation expectations seem well anchored”.

Inflation fell to 38.1% in September 2023

Inflation for the month of September 2023 fell to 38.1% from 40.1% in August 2023.

According to figures from the Ghana Statistical Service, both food and non-food inflation dropped.

Whilst food inflation declined to 49.4% from the 51.9% recorded in August 2023, non-food inflation also decreased to 29.3% from the 30.9% recorded in August 2023.