Ghana’s inflation rate drops to 35.2% in October — lowest in 14 months

Ghana’s annual consumer inflation rate slowed to a 14-month low of 35.2 percent in October 2023, down from 38.1 percent in September.

Samuel Kobina Annim, the government statistician for Ghana, made the announcement on Tuesday. 

The latest inflation rate is the lowest since September 2022.

Ghana’s statistics office said the deceleration was driven by the softening in food prices. 

Food inflation moderated to 44.8 percent in October from 49.4 percent in September. 

On the other hand, non-food price growth was 27.7 percent in October against 29.3 percent in the prior month. 

According to the office, month-on-month inflation rose by 0.6 percent in the month.

The development comes a day before Ofori-Atta, Ghana’s minister of finance, is expected to present the government’s 2024 annual budget statement and economic policy to parliament on November 15, 2023.

In May 2023, the International Monetary Fund’s (IMF) executive board had approved a three-year extended credit facility (ECF) arrangement of $3 billion for Ghana.

The IMF said the programme will help Ghana to overcome immediate policy and financing challenges, mobilise external financing from development partners and provide a framework for the successful completion of the ongoing debt restructuring.

According to the IMF, the West African country will receive an immediate disbursement of about $600 million.

Ghana sought help from the IMF in July 2022 after its citizens protested spiralling inflation, currency depreciation, and other economic woes.

The country had previously refused to seek IMF support.