Inflation Archives - Page 7 of 7

15 Dec

Inflation To End 2023 At 25% – BoG

wontumionlineBusinessBoG, Inflation, Monetary Policy Reporrt

Inflation is likely to peak in the first quarter of 2023, and ease to around 25% by the end of 2023, the Bank of Ghana’s November 2022 Monetary Policy Report has disclosed. This forecast is however conditioned on the tightness of monetary policy and the deployment of tools to contain excess liquidity in the economy. The report said “there are, however, upside risks to the outlook, emanating from the persistent upward adjustments in ex-pump petroleum products and transport fares with associated second-round effects on the pricing of goods and services”. “Additionally, the proposed VAT increase and currency pressures may exert…

14 Dec

Inflation Jumps To 50.3% In November 2022, Highest In 27 Years

wontumionlineBusinessGSS, Inflation, November 2022

Inflation went up by 9.9% to 50.3% in the month of November 2022, according to latest figures from the Ghana Statistical Service. This is the highest figure recorded in 27 years. The increment was expected because of fuel price increases and the cedis’ depreciation during the month under review. However, the trend may halt or reverse in December 2022 due to the recent improvement in the value of the cedi to the dollar and fall in fuel prices. According to the figures, food inflation hit 55.3%, from October’s rate of 43.7%. Non-food inflation also shot up by 7.2% to 46.5%…

10 Nov

Fitch Solutions Predicts Disinflation Process For Ghana In 2023; Inflation To Average 18.7%

wontumionlineBusinessFitch solutions, imf, Inflation

International research institution, Fitch Solutions, is forecasting a disinflation process for Ghana throughout next year. This is due to an expected programme from the International Monetary Fund and the stabilisation of the cedi. It expects inflation to average about 18.7% in 2023, from over 30% in 2022. Senior Country Risk Analyst at Fitch Solutions Mike Kruiniger says these are necessary measures for economic growth. “We expect disinflation throughout 2023 as the exchange rate stabilised on an expected IMF deal. It will remain elevated at an average of 18.7%.” “As such, it will continue to exert downside pressure on household purchasing…

10 Nov

Increase In Food Prices, Others Push October Inflation To 40.4%

wontumionlineBusinessGhana, GSS, Inflation, Prof. Samuel ANNIM

Increases in food prices; housing, electricity and fuel, and three other divisions pushed inflation for the month of October 2022 to 40.4 %. This means the cost of credit is expected to go up further as the Bank of Ghana is set to take a decision on the policy rate – the rate at which it lends to commercial banks- by November 25, 2022. The food inflation recorded the highest rate among all the components as against non-food inflation, according to figures from the Ghana Statistical Service. The increase by food inflation indicates a jump of more than 3% from…

09 Nov

Consumer Inflation Set To Cross 40% Mark

wontumionlineBusinessInflation

Consumer inflation is expected to surpass the 40 percent threshold for an accelerated 17th consecutive month due to the local currency’s depreciation, particularly over the past month, as well as the rise in fuel prices and full effects of utility rates hikes. Ahead of the official release by Ghana Statistical Services (GSS) today, Wednesday, November 9, 2022, market watchers are anticipating the consumer inflation rate will increase to between 40 and 43 percent. Under constant cost pressures and cedi depreciation, the country’s headline inflation increased to a multi-year high through the first three quarters of 2022. In the first nine…

27 Oct

Over Reliance On Monetary Policy To Fight Inflation, Stabilise Cedi Not Oorking – GNCCI

wontumionlineBusinessBoG, CEDI DEPRECIATION, GNCCI, Inflation, Monetary Policy

The Ghana National Chamber of Commerce and Industry (GNCCI) is raising concerns about the excessive reliance on monetary policy by the Bank of Ghana to control inflation and the cedi’s depreciation. According to him, the monetary policy tool is not working but rather worsening the economic situation. “There is the need to align the monetary and fiscal policies to address the situation by implementing unorthodox homegrown policies to tackle the ongoing economic crisis”, Clement Osei-Amoako, President of the Chamber disclosed at the 46th Annual General Meeting of the GNCCI in Accra. He urged government to work with the multinational companies…

19 Oct

Rising Inflation To Continue Posing Risk To Yields On T-bills – Report

wontumionlineBusinessBonds, Inflation, upside risk, yields

The rising inflation will continue to pose an upside risk to yields on Treasury bills and other short-term securities. According to a report by Databank Research, investors will continue demanding higher yields to compensate for the rising inflation. “Headline inflation came in at 37.20%, fueled by housing and utilities, household furnishings, and transport. We expect investors to continue demanding higher yields to compensate for the rising inflation”. Inflation has been surging and it’s uncertain whether the rate will fall anytime soon. Though interest rates have been rising, investors are not so much enthused about the yields because it is far…

07 Oct

Use Gold To Control Rising Inflation – Jantuah Tells Govt, BoG

wontumionlineBusinessBoG, Inflation

Energy Expert Mr Kwame Jantuah has suggested to the managers of the Ghanaian economy to use gold to control inflation in the country. In his view, Gold has the ability to hedge inflation hence must be utilized properly. The former Vice President pf the Public Interest and Accountability Committee (PIAC) said this whiles speaking on the increment of the Policy Rate by the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) from 22 per cent to 24.5 per cent. He said “Gold is a good commodity for hedge of inflation. Are we the first largest producer of gold in Africa? How have…

15 Sep

Inflation Shoots Up To 33.9% In August 2022; Highest In 21 Years

wontumionlineBusinessInflation

Inflation shot up to 33.9% in August 2022, the highest in 21 years, data from the Ghana Statistical Service (GSS) has revealed. This is expected to increase the cost of borrowing by raising interest rates further. Relative to July 2022, year-on-year inflation increased by 2.2 percentage points in August 2022 and month-on-month inflation reduced by 2.2 percentage points over the same period. On a monthly basis, the rate of inflation between July 2022 and August 2022 also went up by 1.9%. Once again, the drivers of the rate of inflation were Housing, water electricity, gas and other fuels (46.7%); Transport…

23 Aug

Treasury Yields To Increase In Coming Weeks; Inflation To Peak In Quarter 4 – Report

wontumionlineBusinessInflation, policy rate, secondary market, Treasury Bill, treasury yields

With liquidity constrained and the policy rate of the Bank of Ghana at 22%, yields on treasury bills are expected to go up in the coming weeks. According to Databank Research, upward pressure on yields persist due to tightened monetary policy directive. For instance, yields went up across the T-bills curve, with the 91-day at 27.72% (+38 basis points) and the 182-day yield at 29.29% (+56bps). “In light of the policy rate hike, we expect investors to focus on T-bills in the primary market for re-pricing benefits. We expect investors would concentrate on short-term bonds in the secondary market to…