Ghana Inflation at Four-Month High, Slims Chance of Rate Cut
Ghana’s annual inflation rate jumped to a four-month-high in October, reducing the chances of another interest-rate cut later this month.
Consumer prices rose 22.1% from 21.5% in September, Government Statistician Samuel Kobina Annim, told reporters in the capital, Accra, on Wednesday.
“The renewed momentum in inflation should make the Bank of Ghana more hesitant to continue its monetary easing later this month, especially if the US Federal Reserve signals a more gradual path of monetary easing,” Mark Bohlund, a senior credit research analyst with REDD Intelligence, said ahead of the release.
The monetary policy committee, which cut the key rate to 27% from 29% in September, had expected inflation to ease toward about 18% by year-end. It will give its final rate decision of 2024 on Nov. 25, just 12 days before the nation holds presidential elections.
The ruling New Patriotic Party’s Mahamudu Bawumia will face off against former president and opposition leader John Dramani Mahama — who is seen as the favorite because of anger over the government’s handling of the economy and high living costs.
The increase was led by food inflation which advanced 22.8% from 22.1%, including a 72.9% rise in the price of eggs and a 91.8% jump in dried pepper prices. Non-food inflation accelerated 21.5% from 20.9%. Prices rose 0.9% in the month.
The cedi weakened 0.2% to 16.4 per dollar, a new record low, at 11:04 a.m. in Accra. The greenback was generally stronger after Donald Trump won the US presidential election earlier on Wednesday.
