According to the World Bank’s October 2024 Africa Pulse Report, Ghana’s inflation rate is anticipated to close 2024 at 23.2%. However, a significant decline to 11.5% is expected in 2025, potentially leading to reduced interest rates and borrowing costs.
The report highlights a broader trend across Sub-Saharan Africa, where inflation is projected to decrease from 7.1% in 2023 to 4.8% in 2024 and further to 4.6% in 2025-2026. This decline is attributed to several factors, including the stabilization of commodity prices following the highs of 2022, alleviation of supply chain disruptions, and the impact of tightened monetary and fiscal policies.
Notably, about 70% of countries in the region are expected to experience lower inflation rates in 2024 compared to the previous year, with this figure rising to nearly 80% in 2025. However, three-quarters of these countries will still see inflation rates surpassing those from the pre-pandemic period.
The dynamics of disinflation in Sub-Saharan Africa reveal two distinct groups: countries with low and declining inflation rates, and about 30% of countries facing persistently high inflation, which has either peaked or is still on the rise.
Source: DEW360.NET
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