Ghana will record an average inflation of about 18.0% by the end of 2024, The Economist Intelligence Unit (EIU) has projected.

This will be a significant fall from the average of about 38% in 2023.

According to the UK-based firm, Ghana’s average inflation in 2024 will place it 8th highest in Africa, but lower than Nigeria (22%).

It said inflationary pressures are expected to ease from the more elevated levels recorded in 2023 for all but a small handful of African countries—including Seychelles and Sudan.

“Inflationary pressures are expected to ease from the more elevated levels recorded in 2023 for all but a small handful of African countries—namely Angola, Seychelles, Sudan and Tanzania, where country-specific factors will push up consumer price inflation”.

It added an easing of consumer price pressures will be a welcome relief for policymakers and households.

However, inflation will run strong into 2024 and remain a central story for several large economies, including Angola, the DRC, Egypt, Ethiopia, Ghana, Nigeria, Sudan and Zimbabwe.

“These countries will continue to suffer the economic instability generated by another year of double-digit consumer price inflation, largely driven by elevated oil prices”.

October 2023 inflation drops to 35.2%

The year-on-year inflation for the month of October 2023 fell to 35.2% from the 38.1% recorded in September 2023.

Data from the Ghana Statistical Service (GSS) showed that the decrease in the general inflation rate was attributed to the marginal drop in food inflation.

Food inflation in the period was 44.8%, while non-food inflation was 27.7%

In addition, inflation for locally produced items was 34.4% while imported items stood at 34.4% from 37.4% in last month.