Ghana’s headline inflation rate fell to 23.2% in February
TLDR
- Ghana's inflation rate for February 2024 drops to 23.2%, a 30-point decrease from January's 23.5%, in line with the Bank of Ghana's projections.
- Food inflation eases to 27%, while non-food price growth decreases to 20% compared to the previous month.
- The Bank of Ghana's monetary policy adjustment, reducing the benchmark rate from 30% to 29% in January, aligns with the declining inflation trend and easing pressures.
Ghana's inflation rate for February 2024 decreased to 23.2%, marking a 30-basis-point drop from January's 23.5%, as reported by the country's Statistician-General, Samuel Kobina Annim. Food inflation slowed to 27% from January's 27.1%, while non-food price growth eased to 20% from 20.5%.
The Bank of Ghana had earlier projected inflation to range between 13% and 17% by year-end, with expectations of gradually returning to its medium-term target range of 6% to 10% by the end of 2025.
The decline in inflation corresponds with policymakers' expectations for continued easing of inflationary pressures. This prompted the decision to conclude the most aggressive phase of monetary tightening, resulting in a reduction of the benchmark rate from 30% to 29% in January.
Key Takeaways
In 2023, Ghana encountered an unprecedented economic downturn marked by a staggering inflation rate exceeding 50%. The nation's economic challenges began in December 2022 with the announcement of a suspension of payments on a significant portion of its $28.4 billion external debt, effectively leading to a default. More recently, the IMF approved a $3 billion rescue package for Ghana, which ranks as the world's second-largest cocoa producer. Furthermore, Ghana is currently undergoing a comprehensive restructuring of nearly all its $47 billion debt to ensure its long-term sustainability. These measures reflect efforts to stabilize the economy and mitigate the impacts of the financial crisis.
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