Ghana is expected to bring inflation down to single digits by early 2026.

IC Research adjusted its prediction to the first quarter of 2026 due to the slow pace of reducing inflation and previous challenges with the exchange rate.

“We also flag the renewed external policy uncertainty as a risk to exchange rate, energy, and food prices with a pass-through to inflation in 2025. However, the recent strong appreciation of the Ghanaian cedi will tame the price pressures in December 2024 into early 2025, potentially capping the upside risk”, it stressed.

The Bank of Ghana (BoG) projected a modestly higher inflation outlook but remained cautiously optimistic about achieving single-digit inflation in the long term.

In its June 2024 inflation report, titled "Canary in the Coal Mine," IC Research adjusted its 2024 inflation estimate to a range of 19.3% to 21.3%, citing slow progress in reducing inflation and the increased likelihood of surpassing the BoG’s initial year-end target of 15.0% ± 2.0%.

While the Monetary Policy Committee (MPC) did not provide an updated inflation forecast for the end of 2024, it indicated a slight increase in the one-year projected average inflation, rising to 20.1% compared to 19.0% in September 2024.

Ghana's annual inflation rate rose for the third consecutive month to 23% in November 2024, the highest since May 2024, up from 22.1% in October.

The rise was largely driven by food prices, which jumped to 25.9% from 22.8% in the previous month, with staples like beans and yams contributing significantly to the increase.