This was the first time its inflation was going down in 5 months, and the first inflation report surfacing following the re-election of the country’s president, John Mahama.
This economic ease seems to be trending towards the right path as the West African country’s Consumer price for February has also decreased, going from 23.5% to 23.1%.
This information was relayed by Government Statistician Samuel Kobina Annim, who also revealed to members of Ghana’s media in the capital, Accra, on Wednesday that prices rose 1.3%.
As seen on Bloomberg, the inflation dip could allow the country’s central bank to cut interest rates for the first time since September.
Food inflation fell to 28.1% from 28.3% during the review period. The non-food inflation rate fell to 18.8% from 19.2%.
Improved supply chains, “a drop in fuel prices during the month, and a relatively more stable exchange rate” may have added to the drop, according to Wilson Elorm Zilevu, an economist with Accra-based Databank Group.
The country’s currency’s (cedi) steady performance and a fall in inflation may encourage the central bank’s monetary policy council to lower its benchmark rate, currently at 27%, by the end of this month.
The policy rate is “already hawkish above inflation,” Zilevu said.
This move was made in expectation of lower pricing pressures as the country’s new leadership tightens budgetary policy.
