Ghana: Inflation to continue disinflationary path in coming months says Fitch Solutions

Research arm of Fitch Ratings, Fitch Solutions says Ghana’s inflation rate will continue on a disinflationary path in the coming months.

According to the research agency, it expects the country’s high inflation rate to significantly decline in the second quarter of 2023.

The anticipated decline in inflation, Fitch Solutions noted, will be on the back a more stable cedi and moderating global energy prices.

“We expect that inflation will come down more substantially in H223.

“While we expect inflation to remain on a disinflation path over the coming months on the back of moderating global energy prices and a more stable exchange rate, inflation will however, remain well-above the Central Bank’s target of 6-10%,” it noted.

Fitch Solutions also asserts that, Ghana’s inflation rate is expected to average 37% in 2023, and further decline to an average of 16% in 2024.

Meanwhile, according to the World Bank’s April 2023 Africa Pulse Report, Ghana’s inflation is expected to remain above 50% in 2023.

Inflation rate has been on the decline since the beginning of the year reaching 52.8% in March 2023.

The Ghana Statistical Service (GSS) which computes the country’s inflation rate will in a few days announce a new inflation rate for the country

It remains to be seen if Fitch Solutions prediction of Ghana’s inflation continuing a  disinflation path holds water.