IC Research has issued a stark warning about Ghana’s inflation rate.
The firm has revised its 2024 inflation forecast upwards by a significant 340 basis points, projecting a year-end figure between 19.3% and 21.3%.
This is notably higher than the Bank of Ghana’s target range of 13% to 17%.
The primary driver of this pessimistic outlook is the growing divergence between food and non-food inflation.
While food prices are expected to ease due to the upcoming harvest, increases in utility tariffs and fuel prices are likely to counteract this, pushing overall inflation higher.
The research firm also highlights the impact of the closed fishing season on seafood prices as a contributing factor to inflationary pressures.
Despite a recent decline in inflation for three consecutive months, IC Research remains cautious, emphasizing the potential for a sustained upward trend if the divergence between food and non-food inflation persists.
