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TLDR
- Ghana’s annual inflation rate eased slightly to 23.5% in January
- That’s down from 23.8% in December, marking the first decline in five months
- The easing inflation comes as Ghana transitions to a new central bank governor
Ghana’s annual inflation rate eased slightly to 23.5% in January, down from 23.8% in December, marking the first decline in five months, according to Government Statistician Samuel Kobina Annim. The drop was driven by a slowdown in non-food inflation, though food prices continued to rise.
Despite the decline, inflation remains well above the Bank of Ghana’s 8% target range (with a 6%-10% tolerance band). The central bank warned last week that inflation will take longer to return to target.
The easing inflation comes as Ghana transitions to a new central bank governor, with the country still recovering from economic turmoil in its cocoa and gold sectors.
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Key Takeaways
Ghana’s inflation slowdown offers little relief, as the 23.5% rate remains the second highest in nine months. The cocoa and gold sectors’ struggles have worsened economic conditions, impacting government revenue and currency stability. The Bank of Ghana faces a difficult balancing act–easing inflation while managing high interest rates that could slow economic growth. With inflation still far from target, monetary policy is unlikely to shift significantly in the short term. As Ghana works to stabilize its economy, exchange rate fluctuations, fiscal reforms, and external shocks will determine how quickly inflation falls to sustainable levels.
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