Ghana’s December 2023 Inflation Rate Drops to 23.2%, Ending the Year on a Positive Note

As 2023 concluded, Ghana recorded a December inflation rate of 23.2%, based on data released by the Ghana Statistical Service. This figure marks a notable 3.2 percentage point decrease from the November rate of 26.4%, representing the lowest rate for the entire year.

Despite this positive month-over-month change in the final five months of the year, the average inflation rate for 2023 stands at 40.27%. This indicates an 8.81% increase compared to the 2022 average rate of 31.36%. The early months of the year heavily influenced the annual rate, particularly leading up to the IMF board approval of Ghana’s extended credit facility aimed at achieving sustainability.

Remarkably, the 2023 average rate is slightly lower than the projected average rate of 42.2% by the International Monetary Fund (IMF) and is approximately equivalent to the revised prediction by Fitch Solutions.

This development unfolds as Ghana grapples with negotiations with external creditors to restructure its external debt, a crucial step to unlock the second tranche of the IMF bailout.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top