Deloitte Ghana, a professional services firm, is projecting a decline in inflation, forecasting an average of 11.9% for 2025. This anticipated decrease is attributed to the recent stability of the cedi and a reduction in domestic food prices. The firm’s report highlights that Ghana’s inflation rate stood at 23% in November 2024, exceeding the government’s target of 15%.
At its “Sneak Preview of 2025” event, Deloitte West Africa gave this prediction. According to the report, “High interest rates have contributed to Ghana’s inflation declining in six of the 11 months so far in 2024”. A far cry from the government’s year-end goal of 15%, the nation’s inflation rate as of November 2024 was 23%. Ghana’s inflation rate for the 11 months of 2024 is 22.85%, which is lower than the average of 40.28% for 2023. It is anticipated that the declining trend would continue in 2025, averaging 11.9%.
This is still above the upper band of the Bank of Ghana’s 8% +/-2% inflation target.” Furthermore, Deloitte noted that the incoming government’s planned implementation of new taxes and increases to existing ones will contribute to the forecasted inflation rate. “The lingering effects of election spending could limit the anticipated pace of disinflation. In addition, the government is likely to implement some new taxes and tariffs, while at the same time increase existing ones, such as water and electricity tariffs,” the report added.
