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Headline Inflation Rate to Hit 17.2% in 2025 – World Bank Projects

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Headline Inflation Rate to Hit 17.2% in 2025 – World Bank Projects

Ghana’s inflation rate is projected to reach 17.2% in 2025, according to the World Bank’s latest Africa Pulse report, underscoring persistent price pressures even as the broader Sub-Saharan region sees a moderation in inflationary trends.

The projection exceeds the 15% inflation ceiling agreed under Ghana’s International Monetary Fund (IMF) programme, suggesting continued challenges in reining in consumer prices amid fiscal consolidation and currency volatility.

Nevertheless, the World Bank anticipates a sharp deceleration in inflation over the medium term. Consumer price growth is expected to fall to 9.4% in 2026 and further to 8.0% by 2027, in line with improving macroeconomic fundamentals and tighter policy settings.

“Of 47 countries in the region, 14 still have inflation rates of two digits or more—including Angola, Ethiopia, Ghana, Malawi, Nigeria, Sudan, and Zimbabwe,” the report noted. “By 2027, the number of countries with two-digit or higher inflation rates is expected to fall to six.”

Ghana’s inflation trajectory comes in the context of a broader regional slowdown in price growth. Median inflation in Sub-Saharan Africa fell from 7.1% in 2023 to 4.5% in 2024, driven by easing global supply chain pressures, more restrictive monetary and fiscal policies, and improved exchange rate stability. However, inflation variability remains high, with the interquartile range widening as some economies—particularly those with weak external positions and elevated fiscal risks—continue to experience double-digit price increases.

The World Bank warned that inflation convergence across the continent could face setbacks should global trade tensions escalate or protectionist policies become more widespread. “The risk of increased inflation remains if restrictive trade policies are implemented around the world,” it said.

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For Ghana, which entered a three-year IMF programme in 2023 to stabilise its economy amid a severe debt crisis, the inflation outlook underscores the need for sustained policy discipline. The central bank has kept interest rates elevated in recent quarters in a bid to anchor inflation expectations and support the cedi, which has faced renewed depreciation pressures in 2025.

While headline inflation has come down from the highs of over 50% in late 2022, underlying price pressures remain elevated, driven by food costs, energy prices, and the impact of fiscal adjustments under the IMF-supported programme.

The World Bank’s projections provide cautious optimism that disinflation is taking hold, but also highlight the structural vulnerabilities that will continue to weigh on Ghana’s recovery.

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