From 54% to 26.4%, it is evident that the inflation rate is being controlled – Akufo Addo

President Nana Addo Dankwa Akufo-Addo has observed that the economic measures implemented, particularly the collaboration between the Bank of Ghana (BoG) and the International Monetary Fund (IMF), are producing positive outcomes.

Highlighting the progress made, he noted a substantial decrease in inflation, citing a reduction from 54% in December 2022 to 26.4% in November 2023. The President also pointed out the sustained stability of the exchange rate, attributing these achievements to the effective partnership between the BoG and the IMF within the government’s program.

Expressing confidence in the financial sector, he commended the BoG for implementing robust corporate governance measures to prevent future bank failures and ensure a resilient banking sector supporting the transformation agenda. These remarks were made during the 2023 Bank of Ghana End of Year Cocktail on Thursday, December 14.

The Ghana Statistical Service (GSS) announced a notable decline in the inflation rate, dropping to 26.4% in November 2023 from 35.2% in October 2023. The GSS attributed this decline primarily to a reduction in food inflation, which fell by 12.6% to 32.2% in November 2023. Non-food inflation also decreased to 21.7% from 27.7% in October 2023, with five divisions recording inflation rates higher than the national average.

Addressing the positive developments, the Governor of the Bank of Ghana, Dr. Ernest Addison, asserted that the central bank’s collaboration with the Ministry of Finance has successfully formulated monetary policies to maintain economic stability. Dr. Addison, speaking at the same event as the President, emphasized the gradual positive results of the IMF-supported PC-PEG program, highlighting the decline in headline inflation from 54.1% in December 2022 to 26.4% in November 2023. He noted that the earlier spike in inflation was a transient issue, and the current trend indicates a return to pre-crisis levels.