Inflation in Ghana is expected to continue its downward trend in April 2025, with market analysts projecting a further decrease to 21.8 percent year-on-year. This follows March’s inflation rate of 22.4 percent. The slowdown is attributed to stable pump prices and a more resilient cedi, as well as improved food supply dynamics. These factors are expected to contribute to a steadying of inflation in the coming months.
A report by Databank Research indicates that the moderation in inflation is likely to persist, supported by these factors. Analysts believe that the steady availability of food will play a key role in reducing price pressures. The ongoing trend of easing inflation has provided some relief to consumers and businesses alike, especially in a country where rising costs have been a persistent challenge.
However, the report also highlights that sustaining this downward trajectory will require careful management of monetary policies. Specifically, it warns that any premature interest rate cuts could jeopardize the progress made so far. The policy rate was raised to 28 percent in March 2025, and any decision to lower rates too soon could reverse the gains achieved in taming inflation.
Overall, while the short-term outlook for inflation remains positive, the report cautions that Ghana’s monetary authorities will need to make cautious decisions to ensure the trend continues without risking economic instability. Market observers will be closely watching the May 2025 monetary policy meeting for signs of any policy adjustments.
Source: Citi newsroom