IMF projects higher inflation rate for Ghana

By Elorm Desewu

The International Monetary Fund, (IMF) has projected an end year inflation of 8.7 percent for the country, which is slightly higher than the 8 percent target by the government.

However, the IMF projection of 8.7 percent end year was within the Central bank’s target band of 8±2 percent.

Figures from the Ghana Statistical Service indicates that year on year inflation measured by the Consumer Price Index, (CPI), has inched up marginally to 9.3 percent for the period ended March 2019 from 9.2 percent recorded in February this year.

This means that prices for goods and services has gone up by 0.1 percent for the month of March 2019.

Two inflation readings released by the Ghana Statistical Service since the January showed inflation still within the medium term target band.

Inflation decelerated in January to 9.0 percent, from 9.4 percent in December 2018, but inched up to 9.2 percent in February 2019 driven by increases in non-food inflation.  Since the last quarter of 2018, inflation has oscillated within a band of 9.0 - 9.5 percent, underpinned by a relatively tight monetary policy stance.

Underlying inflationary pressures, as measured by the Central Bank’s core inflation have continued to ease and inflation expectations remain well-anchored.