Ghana is projected to experience an average inflation rate of 19.5% in 2024, according to the International Monetary Fund (IMF). In its latest World Economic Outlook, the IMF also forecasts an end-of-year inflation rate of 15% for the country.
Looking ahead, the IMF anticipates a significant decline in inflation, predicting an average rate of 11.5% for 2025. This reduction is expected to alleviate the costs of goods and housing, thereby stimulating consumer spending and boosting aggregate demand.
The end-of-year inflation rate for 2025 is estimated to drop to 8.1%, which would mark the lowest inflation level since 2019.
In its October 2024 Regional Economic Outlook, the IMF noted that further policy adjustments could contribute to this downward trend in inflation. “The regional GDP-weighted headline inflation is projected to decline substantially, from 18.1% in 2024 to 12.3% in 2025, with significant decreases in Angola, Ghana, and Nigeria,” the report stated.
The IMF also mentioned that “median inflation will decline slightly, from 4.7% to 4.5%. However, inflation will remain substantially higher in oil-exporting countries than in the rest of the region.”
In related developments, inflation in Ghana surged to 21.5% in September 2024, an increase from 20.4% in August, as reported by the Ghana Statistical Service (GSS). This rise occurred shortly after the Bank of Ghana announced a 2.0% cut to its benchmark Monetary Policy Rate (MPR), the most significant reduction in six years.
