According to the statistics service’s report on Wednesday, there was a deceleration in Ghana’s consumer inflation rate, dropping from 45.0% in March to 41.2% on an annual basis in April.
The deceleration in Ghana’s consumer inflation rate in April marked the fourth consecutive month of slowing inflation. This downward trend follows a significant peak in December, where inflation reached its highest level in over two decades at 54.1%.
Ghana, known for its production of cocoa, gold, and oil, is currently grappling with its most severe economic crisis in a generation. As part of its efforts to address this crisis, the nation is undergoing a debt restructuring process to secure a substantial $3 billion loan from the International Monetary Fund (IMF). This loan aims to provide much-needed financial support and stability to Ghana’s economy.
Despite the deceleration in inflation, the monetary policy committee of Ghana’s central bank took analysts by surprise in March when it opted to raise its main interest rate to 29.5%. This decision indicates that the committee did not perceive the economic situation to be stabilizing at that point, despite the slowdown in inflation. The central bank’s move reflects its cautious approach toward monetary policy and its commitment to addressing the ongoing economic challenges faced by the country.