IC Research has it that, inflation for the year 2023 is projected to conclude at around 27.3% +/- 1.0, exceeding the government's upper target of 31.4% and central target of 29.4%.

The research report highlights expectations for a hastening pace of disinflation in the second half of 2023, attributed to favorable base effects, reduced food prices, decreased impact of earlier tax hikes, and a slowdown in the depreciation of the cedi post-January 2023.

IC Research attributes this trend to a suitably tight monetary policy stance, including the discontinuation of Central Bank financing for the Treasury's budget deficit.

The report anticipates a cumulative decline to 35.2% in October 2023, with a potential full-year closure at 27.3% +/- 1.0 percentage points.

The declining momentum is envisioned to persist into 2024, supported by the prevailing tight monetary stance and the ongoing IMF program as key policy anchors.

However, the report foresees a temporary upside deviation in March 2024 due to an unfavorable base drift effect. From May to July 2024, favorable base effects are expected to outweigh seasonal food price shocks, exerting downward pressure on headline inflation in the second half of 2023.

In October 2023, year-on-year inflation decreased to 35.2% from September's 38.1%, primarily attributed to a marginal drop in food inflation.

Food inflation stood at 44.8%, while non-food inflation was at 27.7%. Additionally, locally produced items experienced inflation of 34.4%, while imported items recorded 34.4%, down from 37.4% in the previous month, according to data from the Ghana Statistical Service.