The International Monetary Fund is predicting an end-year inflation rate of 11.6% for Ghana, according to its World Economic Outlook Report.
This is coming on the back of the marginal drop of September 2020 inflation to a rate of 10.4%.
The Bretton Wood institution’s forecast will be higher than the Bank of Ghana’s inflation target of 8+\-2%.
It however forecast a single digit inflation of 8.7% for 2021. Its single digit inflation projection for the country last year was achieved.
The Ghana Statistical Service cited some reduction in prices of food stuffs as the driver of the slight fall in the inflation rate in the month of September.
Inflation is a very important economic indicator because of its effect on interest rates and cost of borrowing.
For instance, the Bank of Ghana’s inflation targeting framework’s objective is to maintain stability in the general level of prices.
The IMF said inflation is expected to remain low this year globally.
In the emerging market and developing economy, inflation is projected at 5% this year, below the historical average for the group.
The country’s inflation rate is far higher than that of neighboring Ivory Coast and Togo whose inflation rates are a little above 1.0%.
Nigeria however has an inflation rate, slightly higher than Ghana but interest rates are lower than that of the country.
September 2020 Inflation
Inflation fell marginally by 0.1% in September 2020 to record a rate of 10.4%.
According to figures from the Ghana Statistical Service, the slight drop was influenced by reduction in some prices of food stuffs.
Month-on-month inflation between August 2020 and September 2020 was however -0.2%. Last month, the month-on-month inflation was also negative (- 0.4%).
On average month-on-month inflation between April to July 2020 was 0.9% and in the six months prior to COVID19 month-on-month inflation rate was 0.7%.
- One feared dead, several others injured after accident at Legon underpass
- Citi FM journalist, Caleb Kudah allegedly picked up by National Security operatives
- Fire guts new Kejetia Market
- Citi FM journalist, Caleb Kudah released from National Security custody
- Wesley Girls: Aside ban on fasting Muslims aren’t allowed to observe Salat – Old student
- Chinua Achebe’s ‘Things Fall Apart’, ‘No Longer at Ease’ and ‘Arrow of God’ are being adapted for television
- Cape Coast airport to be completed before end of second term – Transport Minister assures
- Don’t shake your car when fueling – Transport Consultant
- Our scholars in Cuba are broke because they insist on table-top payment – GNPC Foundation
- Uber, Bolt, Yango drivers in Kumasi suspend services over life-threatening incidents
Fairtrade and Cocobod organise 2-day training on standards and sustainability
Vodafone Ghana Foundation marks Mothers’ Day with Porter’s Village Orphanage
Man charged for using Covid loans to buy Ferrari
‘I want to live like a human being’ – A ‘kayayo’s’ wish
Social media users react to arrest of Citi FM’s Caleb Kudah
4 more die of Covid-19, active cases now 1,519
Eight home-based players included in Ghana’s squad to face Morocco and Ivory Coast
“Extraordinary problems require extraordinary measures” – Lands Minister justifies burning of excavators
Government’s fight against galamsey camouflage – PPP
Court remands 32 alleged national security operatives accused of mining
Kenyan MPs summoned over bribery claims
#FixTheCountry: Be measured in your expectations of Akufo-Addo due to Covid-19 – Chief of Staff
#FixTheCountry: Pay cut for political leaders will not achieve much – Afenyo-Markin
Kumawood stars grace Mercy Asiedu’s 50th birthday party
MTN Ghana donates in support of Eid celebration in Western Region