Ghana’s inflation rate fell more than expected, from 38.1% in September 2023 to a 14-month low of 35.2% in October.
The Times reported that the cocoa-producing country is in negotiations to renegotiate its obligations with bilateral and commercial creditors as it navigates the greatest economic crisis in a generation.
Accra’s annual inflation rate decreased to 35.2% on Tuesday from 38.1% in September, according to government statistician, Samuel Kobina Annim.
The decision to release the data by one day was to accommodate Finance Minister Ken Ofori-Atta’s announcement of the 2024 budget tomorrow. With this move, the central bank will have more flexibility to keep borrowing costs the same when it meets later this month with the monetary policy committee.
Food prices fell more quickly than anticipated, outpacing the median estimate of seven analysts surveyed by Bloomberg, which had predicted a rate of 36.3%.
Food inflation fell to 44.8% from 49.4% in September, while non-food price rise fell to 27.7% from 29.3% the previous month. The month-over-month increase in prices was 0.6% overall.
The slowdown in inflation and the impending bailout package from the International Monetary Fund later this year, which is intended to support the cedi and increase reserves, could persuade the monetary policy committee to maintain borrowing costs at 30% for a second consecutive meeting. The committee’s verdict is expected to be made public on November 27.
It is expected that Ofori-Atta’s budget will detail the government’s efforts to meet the requirements of the $3 billion IMF program that was approved in May, including developments regarding an in-principle agreement with bilateral lenders to restructure the country’s debt and release more funding.
