The Bank of Ghana is projecting that inflation will remain above the upper band of the medium-term target of 8%±2 until 2025.

According to the Central Bank, there are risks to the outlook.

“Risks to the outlook include the second-round effects of the recent upward adjustments in utility tariffs in September 2023 (electricity by 4.22% and water by 1.18%), climatic factors, unexpected cuts in OPEC+ crude oil production, and the escalation of geopolitical tensions which might impact crude oil prices".

These risks, however, it said, are expected to be moderated by favourable base drift effects, tight monetary policy stance, relative exchange rate stability, expected inflows from the cocoa syndication loan, disbursement of the second tranche of the International Monetary Fund Extended Credit Facility, and from other multilaterals such as the World Bank and African Development Bank

In the outlook, the disinflation process, it stressed, is expected to continue. 

Inflation fell significantly to 26.4% in November 2023 from 35.2% recorded in October 2023.

According to the Ghana Statistical Service, food inflation was the major contributor to the decline in the rate of inflation.

Food inflation dropped by 12.6% to 32.2% in November 2023. The month-on-month rate of food inflation was 0.8%.

For non-food inflation, it also eased to 21.7%, as compared with 27.7% in October 2023. The month-on-month rate of non-food inflation stood at 2.2%.