Inflation Archives - Page 6 of 7

01 Mar

How The Dollar, Energy And Food Prices Swirled After A Year Of War

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Russia's invasion of Ukraine has disrupted economies and markets around the world, from energy and food prices to European banks, emerging market stocks and the Russian currency. Below are five charts that show how Europe's biggest conflict since World War Two (WWII) has shaped global financial markets in the last 12 months. The safest of safe havens There are many reasons why king dollar reigned supreme in the past year and one is its status as the ultimate safe haven in times of uncertainty. The economic fallout of the war, which hit currencies such as the euro hard, also lifted…

20 Feb

Inflation Likely To Peak In Quarter 1, 2023 – BoG Affirms Position

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The Bank of Ghana has reiterated that inflation is likely to peak in the first quarter of 2023 and gradually ease thereafter. However, headline inflation is projected to remain above the upper band of 8±2 percent until the second half of 2025. In its January 2023 Monetary Policy Report, the Central Bank said its decision to keep the policy rate high was due to the significant upside risks to the inflation outlook. On the domestic front, the report said the continuous monetary policy tightening and the relative stability in the exchange rate in December 2022 led to some moderation in…

16 Feb

Ghana’s Inflation Dips For The First Time Since May 2021

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Ghana's consumer inflation fell marginally in January to 53.6% year on year, down from a more than two-decade high of 54.1% the previous month, according to statistics released on Wednesday. This is the first month that inflation has slowed since May 2021. The country is facing its worst economic crisis in a generation as capital outflows, a crushing debt-service load, and fast currency devaluation wreak havoc on government and individual budgets. This report is courtesy of Reuters, a British news agency. Since early last year, Ghana's central bank has raised lending rates by 13.5 percentage points to curb price increases. According to…

13 Feb

BoG Must Be Blamed For High Inflation – Professor Williams Peprah

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US-based Associate Professor of Finance at Andrews University in Michigan USA, Williams Kwasi Peprah, has accused the Bank of Ghana for high inflation in the country. The Bank of Ghana has justified financing of the government’s 2022 budget with about ¢44.5 billion. In a statement, the Central Bank said its financing of government was part of a crises management tool used in dealing with the difficulties of 2022. “It must be recognised that the ongoing debt operations are part of the corrective measures designed to address the financing problem of the budget. Bank of Ghana financing was part of a…

23 Jan

IMF Will Cause Deflation By Stabilizing The Economy- Kofi Tonto

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Government's spokesperson, Kofi Tonto, says intervention of the IMF will help stabilize the economy and cause a reduction of inflation in the country. Speaking in an interview with Kwaku Dawuro, on Movement In The Morning, on Movement TV/Wontumi radio, Mr Tonto briefed Ghanaians on the benefits of the Debt exchange programme initiated by the government, as well as intervention of the International Monetary Fund (IMF). He asserted that '' Inflation goes up naturally and with regards to what happened in the past year, arguably it is not a normal rate of inflation we usually encounter. By the grace of God…

19 Jan

Ghana To End 2023 With 33.4% Average Inflation – Fitch Solutions

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International research institution and market information firm, Fitch Solutions, has reiterated a disinflationary process for Ghana in 2023, forecasting an average inflation of 33.4%. According to its latest assessment of the Ghanaian economy, inflation will only decline gradually in 2023 as tax hikes – including an increase in the Value-Added Tax to 15.0% – will exert upward pressure on consumer prices. The projection means inflation will still remain high this, but lower than last 2022’s average. “A decline in real incomes will weaken consumer activity in 2023. We anticipate a disinflationary trend in 2023 – with price growth averaging 33.4%. Fitch…

16 Jan

Interest Rates Remain Unchanged As Government T-Bills Oversubscribed By 52%

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Interest rates remained stable despite the government achieving more than 52% oversubscription of Treasury bills sale. According to the latest auction results, government obtained ¢1.72 billion from the short-term securities, but accepted ¢1.71 billion of the bids tendered. The target for the auction was ¢1.125 billion. More than 85% of the bids tendered were from the 91-day T-bills as demand surged. Government accepted all the bids of about ¢1.47 billion. Again, the government accepted all the bids of ¢198.49 million tendered by the investors, largely banks. The yield on the 91-day and the 182-day T-bills dipped slightly though relatively same…

12 Jan

Inflation To Peak In March 2023 – Economist

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The increasing rate of inflation is expected to peak in March 2022, Economist and Research Lead at GCB Capital, Courage Boti, has stated. Inflation shot up by 3.8% to end 2022 at 54.1%, according to data from the Ghana Statistical Service. However, the rate of increase between November 2022 and December 2022 slowed down. Speaking to Joy Business, Economist and Research Lead with GCB Capital, Courage Boti, said the general increase in prices of goods and services will reach the highest level in March 2023 after which inflation will witness decline. According to him, this is likely to happen if the…

11 Jan

Inflation For December Jumps To 54.1%

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The Ghana Statistical Service has pegged the inflation rate for December 2022 at 54.1 percent. This means that in the month of December 2022, the general price level was 54.1% higher than in the same period in 2021. At 59.7%, food inflation was the highest inflation rate for December 2022, soaring past the 55.3% recorded in November 2022. Inflation for locally produced items was 51.1 while that for imported items stood at 61.9% Speaking at a press conference on Wednesday, the Government Statistician, Professor Samuel Kobina Annim also disclosed that on a year-on-year basis, water went up by over 94%,…

28 Dec

Policy Rate To Hit 29% In 2023; Cost Of Loans To Further Escalate – Fitch Solutions

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Fitch Solutions is projecting a further monetary tightening by the Bank of Ghana [BOG] next year. According to the UK based research and market information firm, the policy rate will go up by a further 200 basis points to 29% in 2023. This will trigger an increase in the cost of credit and consequently heighten the cost of doing business in the country. The policy rate has already gone up by more than 12.5% in 2022 due to the skyrocketing inflation. It stood at 14.5% in January 2022, but currently at 27%. Senior Country Risk Analyst at Fitch Solutions, Mike…