Ghana: Inflation accelerates to eight-month high in December
Latest reading: Inflation rose for the fourth month running in December, coming in at 23.8%, which was up from November’s 23.0%. December’s figure marked the highest inflation rate since April and notably surpassed the Bank of Ghana (BOG)’s 6.0–10.0% medium-term inflation target. Looking at the details of the release, prices for food and beverages plus transport increased at faster pace in December. Meanwhile, price growth of clothing and footwear plus housing and utilities moderated.
Accordingly, the trend pointed up, with annual average inflation increasing to 22.9% in December (November: 22.8%).
Lastly, consumer prices rose a seasonally adjusted 1.81% from the previous month in December, coming in below the 2.56% rise recorded in November.
Outlook: In 2025, our panelists expect inflation to gradually trend down from 2024, partly reflective of a high base of comparison and the delayed impact of past hikes to interest rates. That said, inflation will remain above the BOG’s target. In addition, inflation could be stoked by potentially higher energy and food prices as a result of geopolitical conflicts and the boost to the U.S. dollar from protectionist policies under the Trump administration. Moreover, further hikes to water and electricity tariffs pose additional upside risks. These risks, coupled with December’s data, may push the Central Bank to cut interest rates more cautiously ahead.