The country’s inflation rate is expected to ease further next year and remain in the single digit bracket, Fitch Solutions, research arm of ratings agency Fitch has revealed.
This forecast is coming on the back of three consecutive months fall to 10.1 percent in October 2020.
A Senior Country Risk Analyst for Sub Saharan Africa, William Attwell tells Joy Business a further drop in inflation will trigger monetary policy easing.
“We would expect monetary policy easing during 2021 because of a further fall in inflation. We’re expecting inflation to ease further next year and that will facilitate that process too. That’s really an austere on the monetary front for Ghana”
Inflation will play a critical role in the Monetary Policy Committee of the Bank of Ghana’s decision on the policy rate at the end of its meeting this Friday 20th November, 2020.
October 2020 Inflation
Year-on-year inflation slowed down in the month of October to record a rate of 10.1%, according to figures released by the Ghana Statistical Service.
This was a reduction of 0.3% from the previous month’s [September 2020] figure of 10.4%.
The GSS attributed the marginal decline in the inflation rate to decline in non-food inflation for the period.