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Ghana’s inflation rate drops to 23.2%

Bisola David
Bisola David
Nigeria's inflation will fall to 21% in 2024 - Cardoso

Ghana’s inflation rate fell to 23.2% in December 2023, a considerable decrease from the 26.4% reported in November 2023.

According to Bloomberg, to battle inflation, the Bank of Ghana’s monetary policy committee kept the policy rate at 30% in November for the third time in a year.

The continuous decrease in inflation data has fueled speculation that Ghana’s central bank may consider loosening monetary policy.

The annual rate of food inflation fell to 28.7%, while the rate of non-food inflation fell to 18.7%.

Inflation was 23.8% for locally produced commodities and 21.9% for imported items.

Food inflation was highest in the Eastern region, at 51.3%, and lowest in the Upper East, at 18.8%. Greater Accra ranked 14th among the 16 regions, with a food inflation rate of 22.2%.

Following that, the central bank said, “There is a need to keep the policy rate tighter for longer until inflation is firmly anchored on a downward trajectory towards the medium-term target.

“The committee observed that, while inflation is slowing, it remains high relative to target. As a result, policy rates must remain tighter for longer until inflation is firmly anchored on a downward track towards the medium-term target. Given these factors, the committee agreed to keep the monetary policy rate at 30.0 per cent,” it added.

The monetary policy committee of the central bank will release the results of its next meeting on January 29.


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