Ghana’s inflation will average about 20% in 2023  – EIU

Inflation in Ghana will average about 20% in 2023, the Economist Intelligence Unit (EIU) has forecast in its 2023 Africa Economic Outlook Report.

This will rank the country 5th on the continent with the highest inflation rate.

It however predicted an average rate of inflation of 32% in 2022.

Zimbabwe and Sudan are expected to place 1st and 2nd respectively in Africa with an average inflation rate of 50% in 2023.

Ethiopia (31.5%) and Sierra Leone (23%) are expected to be ranked 3rd and 5th respectively.

Malawi (18%), Angola (13.3%), Burkina Faso (13.2%), Nigeria (13.1) and Burundi (12.5%) are also expected to place 6th, 7th, 8th, 9th and 10th respectively on the African continent.

EIU said annual average consumer price inflation will be in double digits for about 42% of African states in 2022 and elevated price pressures have become problematic for governments, businesses and households across the continent.

“Price pressures will remain high but ease back in 2023 in all African states except Zimbabwe, partly as a result of monetary policy adjustments and softer commodity prices”, it pointed out.

It further said about two-thirds of African states have increased their domestic policy interest rates in 2022—to curb inflation and ease pressure on exchange rates — and the majority of Africa will raise domestic policy rates further in 2023.

“African governments will need to tread carefully to protect fragile confidence among households and businesses and to avoid disrupting short- to medium-term economic growth prospects. Policymakers faced by the most pressing need to tighten monetary policy are likely to be found in Ghana, Ethiopia, Egypt, South Africa and Zimbabwe”, it concluded.

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