Ghana’s inflation dropped for the second consecutive month, falling to 23.1% in February from 23.5% in January, signaling potential for the central bank to cut interest rates for the first time since September.
By the numbers
- Food inflation: 28.1% (down from 28.3%)
- Non-food inflation: 18.8% (down from 19.2%)
- Monthly price increase: 1.3%
Why it matters: The Bank of Ghana’s policy rate—currently at 27%—is well above inflation, creating room for a possible cut when the Monetary Policy Committee meets this month.
What’s driving the slowdown
- Improved supply chains
- Lower fuel prices
- A stable cedi
What’s next
- The Bank of Ghana may adjust rates to support economic growth.
- Finance Minister Cassiel Ato Forson will present the first budget of President John Mahama’s administration on March 11, shaping fiscal policy for the year.
Big picture
“Price growth may see a steady cooling in the next few months,” said Wilson Elorm Zilevu, an economist at Databank Group, pointing to continued stability in inflation and currency markets.
Source: Bloomberg
