Economist Intelligence Unit (EIU) expects inflation to end the year at 38.1 percent on the average, despite a slowdown in monthly inflation over most of the period.

According to the UK-based firm, the upward domestic price pressures will be spurred in part by pass-through effects of sustained depreciation and the introduction of new taxes, including a rise in the Value Added Tax (VAT) rate and excise duties.

“We expect inflation to rise further on average in 2023, to 38.1%, despite a slowdown in monthly inflation over most of the period, with inflation having declined to a (still very high) annualised 45% in March, from 52.8% in February [2023]

It, however, expects inflation to average 10.9% a year between 2024 and 2027, falling into the lower half of the Bank of Ghana’s target range of 6-10% in 2027.

This will reflect waning supply-side price pressures as global commodity prices decline.

March 2023 inflation falls sharply to 45%

Inflation for March 2023 fall sharply to 45%, influenced by some deflation of items in both the Food and Non-Alcoholic Beverages group and Non-food inflation.

The drop is significant due to the level of increase recorded few months ago, after it declined to 52.8 % in February 2023.

However, this may not translate to ease in lending rates anytime soon, as inflation still remains high. According to the data from the GSS, Food inflation fell by 8.3% in March 2023 to 50.8%. Also, Non-food inflation fell to 40.6% in March 2023, from 47.9% in February 2023.