Inflation in Ghana is expected to continue its downward trend in the short term, with a forecasted year-end rate of 20.8% in 2024, according to Fitch Solutions’ Ghana Inflation 2024 Consumer Outlook.
The UK-based research firm projects that inflation will average 22.1% for the year, marking a significant decline from its December 2022 peak of 54.1%.
Despite this progress, inflationary pressures remain elevated compared to pre-pandemic levels, when inflation averaged 12.4% between 2015 and 2019.
Fitch Solutions expects inflation to continue easing into 2025, forecasting an average of 16.2% year-on-year.
The decline in food inflation is particularly beneficial for consumer spending, as food and non-alcoholic drinks represent more than 42% of household expenditures in Ghana.
This reduction may allow for increased spending on other goods and services. However, rising inflation in key segments such as housing, utilities, and transport poses risks.
Transport inflation surged from 5.6% in January 2024 to 18.1% by July 2024, while housing and utilities costs rose from 22.6% to 28.6% over the same period, potentially dampening consumer spending in these areas.
