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Ghana could end the year with an average inflation rate of 9.5 percent, that’s according to a Stanchart Africa’s research focus report dubbed Ghana – Today’s fiscal imbalance tomorrow’s inflation.
The forecast is higher than government’s own 8.5 percent outlined in the budget.
Stanchart Africa Research boss Razia Khan explained to Joy Business what informed their research.
She said the research team tracked the strengthening of the Ghana Cedi and used that to measure the best possible inflationary outcome.
Razia Khan said by their calculation, “inflation is likely to average around 9.5 per cent this year, 10.6 per cent next year and 9.3 per cent in 2013.”
She said the government can only achieve its 2011 inflation target if the Ghana Cedi appreciates in value dramatically which in her view doesn’t look likely.
The report noted that though government has made strides in mobilizing revenue, this has been stretched by increased spending. It also noted that government’s plan to narrow its deficit by nearly five percent remains ambitious.
Source: Joy Business/Ghana
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Stanchart Africa forecasts 9.5 percent inflation for Ghana