The International Monetary Fund is projecting a 9.6% inflation by the end of the year before returning to target next year.
This means prices of goods and services will inch up but slightly between now and the rest of year.
The new forecast by the IMF is in line with the Bank of Ghana’s target of 8%+/- 2, lower than its earlier projection.
This means your disposable income will not be affected much, whilst your savings will not be eroded as well.
However, any risk to the exchange front -where the cedi has done pretty well so far this year - and the current account, could be challenging.
Inflation spiked to double digits in April last year because of rising food prices due to the partial lockdown, before falling to 7.5% in May 2021 this year.
But pressures from higher fuel and import prices and budget revenue measures could push it up slightly before the end of the year, before returning to target next year.
Already, interest rates on the money market have taken a nosedive, indicating a reflection of the lower inflation.
Lending rates have also fallen to about 20% per annum, a move that will encourage borrowing by the private sector to stimulate growth.
The IMF at the beginning of the year forecast an end-year Inflation rate of 8.7% for Ghana but in May 2021 revised the rate upwards to 9.8%.
It still however makes it one of the countries with the highest increases in prices of goods and services in the ECOWAS sub region.
Latest Stories
-
Gold Fields Ghana Foundation challenges graduates to maximize benefits of community apprenticeship programme
1 hour -
GBC accuses Deputy Information Minister Sylvester Tetteh of demolishing its bungalow illegally
1 hour -
Boost for education as government commissions 80 projects
2 hours -
NAPO commissions library to honour Atta-Mills’ memory
2 hours -
OmniBSIC Bank champions health and wellness with thriving community walk
2 hours -
Kora Wearables unveils Neo: The Ultimate Smartwatch for Ghana’s tech-savvy and health-conscious users
2 hours -
NDC supports Dampare’s ‘no guns at polling stations’ directive
2 hours -
Police officer interdicted after video of assault goes viral
2 hours -
KNUST’s Prof. Reginald Annan named first African recipient of World Cancer Research Fund
2 hours -
George Twum-Barimah-Adu pledges inclusive cabinet with Minority and Majority leaders
3 hours -
Labourer jailed 5 years for inflicting cutlass wounds on businessman
3 hours -
Parliament urged to fast-track passage of Road Traffic Amendment Bill
3 hours -
Mr Daniel Kofi Asante aka Electrician
3 hours -
Minerals Commission, Solidaridad unveils forum to tackle child labour in mining sector
3 hours -
Election 2024: Engagement with security services productive – NDC
3 hours