The persistent rise in inflation in Ghana and Nigeria will stifle economic growth, Deloitte West Africa has revealed in its November 2024 Inflation Update.

According to the leading professional services firm, businesses face higher costs while consumers have cut spending, worsening the ongoing cost of living crisis.

This is coming after inflation in Ghana surged for the third-consecutive month to 23%, driven by rising food prices and election spending.

Similarly, headline inflation in Nigeria rose to 34.60%, reflecting a further increase in the cost of goods and services.

Deloitte warned that Christmas-related spending will spur inflation upwards in December 2024.

The Economist Intelligence Unit is projecting an average inflation rate of 22.4% for Ghana and 33.2% for Nigeria in 2024.

This is expected to decline to 15.2% and 27.7% in 2025 for Ghana and Nigeria respectively, supported by improved foreign exchange stability, trade policy and base effects.

Ghana’s November 2024 inflation was driven by five divisions. They were led by Alcoholic Beverages, Tobacco and Narcotics (30.0%); Housing, Water, Gas and Electricity (29.20%) and Health (22.20%).