- Data from the Ghana Statistical Service has shown that inflation is back to its pre-COVID-19 status
- Average inflation decreased by 7.5%, the lowest since March 2020
- This comes after the Bank of Ghana cut the policy rate
Ghana’s inflation has returned to its pre-pandemic status, data from the Ghana Statistical Service showed.
Per the data which was released on Wednesday, June 9, 2021, the country’s average inflation went up by 7.5%.
Comparing it to the 8.5% and 9.9% recorded in April and January respectively, this means that the May rate is the lowest since March 2020 which was 7.8%.
This is coming on the back of the cutting down of the policy rate by the Monetary Policy Committee (MPC) of the Bank of Ghana.
The MPC cut the policy rate to 13.5% from 14.5%.
“Since the initial shock to inflation in April 2020, the forecast showed that inflation will be close to the central target by June 2021. These forecasts remain broadly unchanged and inflation will remain within the target band in the next quarter,” the MPC stated at its 100th meeting.
The MPC further stated that risks to the inflation outlook appear muted in the near term, but pressure from mostly rents and transport fares will require some monitoring to anchor inflation expectations.
In other news, the Minister of Finance, Ken Ofori-Atta, revealed that the 2021 population and housing census will cost the country GHS521 million.
According to him, the amount is expected to cover logistics and payment of personnel who will be involved in undertaking the census.
Ken Ofori-Atta said the government will provide the needed funds to make the exercise a successful one and has already disbursed GHS 467.2 million
Meanwhile, Ghana’s public debt stock hit ¢304.6 billion in March 2021 as it rose by ¢13 billion, the latest Bank of Ghana (BoG) Summary of Economic and Financial Data has revealed.
This is equivalent to 70.2% of Gross Domestic Product (GDP), lower than the 76.1% registered in December 2020.
According to a report filed by Joy News, the fall in debt to GDP ratio is probably due to the expansion in the size of the economy, despite the impact of the COVID-19 pandemic on the economy.