Fitch Solutions is projecting an average inflation of 19.0% for Ghana in 2024.

This is lower than the International Monetary Fund’s 22.3%.

According to the London-based firm, the lower inflation will alleviate pressure on household finances and boost the purchasing power of consumers.

A Senior Country Risk Analyst at Fitch Solutions, Mike Kruiniger said though the March 2024 inflation showed an uptick, this can be primarily attributed to base-side effects and expects inflation to resume a downward trend in the coming months.

“So lower inflation will alleviate pressure on household finances and increase the purchasing power which will support economic growth”.

“While the March [2024] inflation showed an uptick, this can be primarily attributed to base-side effects and we expect inflation to resume a downward trend in the coming months averaging 19% this year”.

“I think it’s probably also worth mentioning that with general elections scheduled for December [2024],  and considering the track record of the Ghanaian government’s spending increases around election time, I think we can similarly anticipate a ramp-up ahead of the December polls”, he added.

Mr. Kruiniger concluded, saying, the government will increase expenditure in 2024 focusing on enhancing enough public welfare programmes which will then inject additional demands into the economy.