The persistent rise in inflation in Ghana and Nigeria will stifle economic growth as businesses face higher costs and consumers reduce spending. Deloitte West Africa has revealed in its Monthly Inflation Update.

This it said will worsen the ongoing cost of living.

According to the report, although the Economist Intelligence Unit (EIU) projects a year-end inflation rate of 20.5%, increased election spending ahead of the upcoming presidential elections will exacerbate inflationary pressures.

It added that the Bank of Ghana will leave its benchmark interest rate unchanged at its last Monetary Policy Committee meeting for the year. The policy rate presently stands at 27.0%.

Ghana’s headline inflation rose further to 22.0% in October 2024, from 21.50% in September 2024.

There were five items that contributed to the surge in inflation. They included Alcoholic Beverages, Tobacco and Narcotics (31.70%); Housing, Water, Electricity, Gas and Other Fuels (27.60%); Restaurants and Accommodation Services (24.60%); Health (23.90%) ad Food and Non-Alcoholic Beverages (22.80%).

The Upper East region recorded the highest inflation rate of 42.0%, whilst the Eastern region recorded the lowest inflation of 18.3%.

Nigeria’s headline inflation also jumped to 33.88% in October 2024. This raised concerns of another interest rate hike.

Bauchi state recorded the highest inflation rate of 46.68%. On the other hand, Delta state registered the lowest inflation rate of 27.85%.