Governor of the Bank of Ghana Dr. Ernest Addison, has revealed that Ghanaians are likely to experience heightened inflation rates for the rest of the year 2022 but should expect a single digit inflation in the year 2023.
The national inflation rate as at April this year stood at 23.6%, almost triple the Central Bank’s 2022 target of 8%.
Exactly a year ago, that is May 2021, the national inflation rate stood at 7.5%.
This rate was the lowest recorded in about a decade. Since that record low, inflation has recorded a consistent rise for 11 straight months, climbing all the way to 23.6% in April 2022.
Between March and April alone inflation jumped by over 4 percentage points.
Responding to a question by Citi Business News on whether or not inflation has peaked, Governor of the Bank of Ghana Dr. Ernest Addison stated that even though inflationary pressures persists, he expects the rate of increases to taper off.
“We do not expect another jump in the headline inflation rate similar to what we had seen in April. So it’s not so much a question of peaking but the rate of increases, in inflation we expect to taper off. We are very much aware of what is in the horizon regarding utility prices and transportation prices and all that, but I don’t think those will even justify the kind of jump we have seen.”
So when should Ghanaians expect to see the inflation rate in single digits like they enjoyed in the early parts of 2021 ?
According to the Governor, we will have to wait till 2023 to see the rate drop to within the medium term target band of 8+/-2%.
“If you look at our inflation forecast profile, we expect that inflation will get back into our target zone sometime in 2023. It means that you will still see heightened inflation rates between now and then. Pressures will only fade out gradually. It is a difficult time for all of us. It affects the poorest the most. This is why the MPC (monetary policy committee) had taken the decision to decisively do all that we can to bring it down as quickly as possible.”