IMF forecasts Ghana’s inflation rate of 8% in 2020

The International Monetary Fund (IMF) is projecting an inflation rate below the upper band of the Bank of Ghana’s target, for this year.

This means the prices of goods and services will remain largely the same, while interest rates stay low.

The Central Bank is forecasting an average inflation rate of 8% +\- 2 for the rest of the year.

In its recent Country Report on Ghana due to the COVID-19 pandemic, the Fund said inflation is expected to rise but remain below the upper band of the central bank target.

This is due to pressures from global supply chain disruptions and depreciation of the cedi.

However, this will be partially offset by lower fuel and food prices.

The Economist Intelligence Unit in its recent Country Report on Ghana forecast a 0.2% increase in average inflation to 8.7% for this year.

Its forecast is based on ongoing currency weakness and upward pressure on the prices of some goods as a result of pandemic-related restrictions and shortages.

However, year-on-year inflation remained unchanged at 7.8 percent in March 2020.
According to figures by the Ghana Statistical Service, month-on-month inflation between February 2020 and March 2020 was, however, 0.8%.