Ghana Inflation Drops to 21.2% in April

Ghana’s inflation rate dropped to 21.2% in April, marking the fourth consecutive month of decline and reaching an eight-month low. This moderation was attributed to easing pressures in both food and non-food categories, though food inflation remains high and continues to challenge households. The strengthening of Ghana’s currency, the cedi, has helped reduce import costs, making it the world’s best-performing currency this year. Despite the improvement, domestic goods experienced higher inflation rates than imports, highlighting persistent local supply constraints. The Bank of Ghana, having recently raised interest rates to control inflation, is expected to reassess its policy stance at the upcoming Monetary Policy Committee meeting. Policymakers remain cautious as monthly inflation saw a slight uptick, suggesting ongoing inflationary risks, particularly in the food sector.