Key facts
- Ghana's annual inflation rate increased to 3.7% in May.
- Food inflation rose to 3.3% year-on-year.
- Transport prices increased at a slower pace due to higher fuel costs.
- The central bank kept its interest rate unchanged in May.
- The central bank anticipates inflation will stay within its 6-10% target band in the near term.
- The finance minister projects end-of-year inflation at 5%.
Ghana experienced a further acceleration in its annual inflation rate, which climbed to 3.7% in May. The primary driver behind this increase was a surge in food inflation, which reached 3.3% year-on-year, with prices for numerous food items rising. While transport prices also saw an increase, they did so at a slower pace, influenced by higher fuel prices. In its recent monetary policy meeting, the central bank opted to maintain its benchmark interest rate. The bank anticipates that inflation will likely remain within its projected target band of 6% to 10% over the near term. However, the nation's finance minister has offered a more optimistic outlook, stating that end-of-year inflation is now expected to be around 5%, a downward revision from a previous forecast of 8%.