Inflation is expected to decline to 22.4% in January 2024 from 23.4% in December 2023, IC Research has predicted in its latest report.
According to the research firm, improved foreign exchange outturn in late December 2023 into early January 2024 would sustain the lid on price pressures.
“Our forecast shows a modest decline in the annual inflation rate to 22.4% y/y in January 2024 as the improved FX outturn in late December 2023 into early January 2024 sustains the lid on price pressures”.
Additionally, domestic energy prices remained stable with downward bias during the January 2024 Consumer Price Index window relative to the same period in 2023.
IC Research also anticipates the lagged impact of the lower electricity tariff implemented last month to sustain the disinflation in January 2024.
“We also anticipate the lagged impact of the lower electricity tariff implemented last month to sustain the disinflation in January 2024. However, the authorities have signalled the introduction of VAT [Value Added Tax] on residential use of electricity above lifeline consumers (>30kWh) with effect from January 1, 2024”.
It continued that this, together with the new taxes in the 2024 budget, will weaken the pace of disinflation in early 2024 and keep the Bank of Ghana cautious on the timing of anticipated start to cuts in the policy rate.
Headline inflation nosedived to 23.2% in December 2023
Headline inflation nosedived 320 basis points to 23.2% in December 2023.
The end-2023 annual inflation outturn roundly outperformed expectations, beating both the market consensus and the 25.4% outer band of the lower limit in the International Monetary Fund (IMF) programme target.
Having peaked at 54.1% in December 2022, the latest annual inflation print of 23.2% in December 2023 translates into a cumulative decline of 30.9 percentage points within a 12-month cycle and clouds the early-2023 stickiness.
Latest Stories
-
Bayor EP: Echoes of Faraday project to celebrate female footballers set for launch on May 18
7 mins -
Geisha Soap celebrates Mother’s Day with weekend of activities
9 mins -
BoG governor calls for more investment in fintech space
16 mins -
Shlomit Sufa: Independence – From mourning to hope
28 mins -
CBG commissions Sickbay Project at Berekum
32 mins -
Wilmar Africa’s Alife Soap brand celebrates mothers at Komfo Anokye Hospital
40 mins -
Newmont supports Korle-Bu Teaching Hospital Children’s Ward with medical consumables
41 mins -
Trading Atlantic Lithium shares on GSE a historic event in Ghana’s mineral resource exploration – Lands Minister
46 mins -
Provident Insurance prioritises customer service as it trains over 100 staff, strengthens digital agenda with Obaa Yaa
53 mins -
We need your support – LOC Chairman for CAA Region II championships
54 mins -
Cedi can only stabilse temporarily but will keep on depreciating – Prof Bokpin
1 hour -
Fast-rising rapper Crytical talks perseverance on new single ‘Borkor Borkor’
1 hour -
Fidelity Bank Ghana denies GH¢3.6million disappearance from KMA Project Fund
1 hour -
Motor rider, pillion killed in ghastly accident in Eastern Region
1 hour -
Nigeria Football Federation outdoor Finidi George as new head coach
1 hour