The Bank of Ghana has said its strong policies coupled with a relative exchange rate stability, and effective liquidity sterilization efforts pushed inflation down drastically.

According to the January 2023 Monetary Policy Report, the disinflation process, which began earlier in the year, continued through to the last quarter of the year will continue.

This has been buttressed by the Fitch Solutions and other research firms. For instance, UK-based, Fitch Solutions, said inflation will ease throughout 2024 averaging 18% in 2024.

Headline inflation sharply decelerated to 23.2% in December 2023, from a peak of 54.1% at the end of December 2022.

The decline in inflation was driven by both easing food and non-food prices. Food inflation decelerated sharply to 28.7% in December 2023 from 59.7% in December 2022, while non-food inflation also fell to 18.7% from 49.9% over the same comparative period.

The Central Bank also said core inflation has also eased significantly, affirming a broad decline in prices.

It explained that the Bank’s core inflation measure, which excludes energy and utility, more than halved to 24.2% in December 2023, down from 53.2% in December 2022.

Similarly, inflation expectations by the banking sector, businesses, and consumers have declined.