Consumer Price Index (CPI) inflation in Ghana has been projected to hit 8.8% ± 1% by the end of 2020, a Databank Research has stated.
“We also see downside pressures from food inflation as the government’s agricultural policy of planting for food and jobs continues to support food harvest. Against the backdrop of upside risks to inflation, partly offset by downside pressures, we project a year-end 2020 CPI inflation of 8.8% ± 1%,” the report
In Ghana, the CPI measures changes in the prices paid by consumers for a basket of goods and services.
Inflation trend in 2019
Inflation ends 2019 lower-than-expected at 7.9%, helped by adjustments in weight allocations to the re-based CPI Ghana’s inflation curve (adjusted for the re-based CPI) generally flattened in 2019, depicting a broadly stable inflation environment for the most part of 2019.
Although the re-basing of the CPI and adjustments of expenditure weights dragged inflation below 8% in Q3-2019, higher taxes and utility tariffs together with intense currency pressures in Q4-2019 have pushed up inflation expectations with modest upside risks to the near-term outlook.
Inflation outlook for 2020
Upside shocks to world market price of petrol and potential depreciation pressures could elevate inflation risks in 2020.
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