Ghana: Inflation hits eight-month low in April
Latest reading: Inflation came in at 21.2% in April, down from March’s 22.4%. April’s figure marked the lowest inflation rate in eight months. Looking at the details of the release, easing price pressures for food, housing and transport drove the fall. A sharp appreciation of the cedi supported disinflation. That said, the recreation and culture plus the textile sectors saw prices rise at a quicker pace in April compared to the previous month.
In addition, annual average inflation came in at 22.3% in April (March: 22.6%), resuming the downward trend it’s been on since September 2023.
Finally, consumer prices increased 0.80% in April over the previous month, accelerating from the 0.25% rise logged in March.
Outlook: Our panelists see inflation continuing its downward trajectory through end-2025 on the back of easing non-food price pressures. That said, high inflation will persist as a result of sticky domestic food prices. Interest rate cuts and potential food shocks pose upside risks to inflation given that Ghana is highly import-dependent.