According to the statistical report released on Wednesday, Ghana witnessed a modest increase in consumer inflation, reaching 42.2% year on year in May, compared to 41.2% recorded in April.
Amidst its most severe economic crisis in recent history, the West African nation is currently undertaking a comprehensive debt restructuring process.
In response to widespread street protests triggered by soaring inflation, the authorities sought assistance from the International Monetary Fund (IMF) in July of the previous year, requesting a support package.
After reaching a staggering high of 54.1% in December, inflation in Ghana has exhibited a downward trend for the fourth consecutive month, decreasing up until April. This decline marks a significant development, as it represents the first steps towards stabilizing the inflation rate, which had reached its highest level in over two decades.
In May, the central bank opted to maintain its primary lending rate unchanged, citing the positive impact of tight monetary policies and a relatively stable exchange rate on the declining inflation. By keeping the lending rate steady, the central bank aims to sustain the progress made in curbing inflation and ensuring a favorable environment for price stability and economic growth.