According to President Nana Addo Dankwa Akufo-Addo, the steps taken to address the economic difficulties are having an impact, particularly the collaboration between the Bank of Ghana (BoG) and the International Monetary Fund (IMF).
For example, he stated that it is evident that the rate of inflation is being controlled.
“Inflation is being controlled, according to the evidence. between December 2022 and November 2023, from 54% to 26.4%. Additionally, we are seeing a prolonged period of exchange rate stability.
“According to the parameters of the government’s program with the fund, the productive collaboration between the BoG and the IMF is producing the desired outcomes.
At the 2023 Bank of Ghana End of Year Cocktail on Thursday, December 14, he stated, “I am also encouraged by the many corporate governance measures put in place by the BoG to mitigate future bank failures and ensure that we have a strong banking sector to drive the agenda of transformation.”
The Ghana Statistical Service (GSS) reported that the inflation rate decreased from 35.2% in October 2023 to 26.4% in November 2023. Food inflation was the main cause of the decline, according to the GSS.
In November 2023, food inflation decreased by 12.6% to 32.2%. The rate of food inflation month over month was 0.8%. Inflation outside of food also decreased, coming in at 21.7% as opposed to 27.7% in October 2023. The non-food inflation rate was 2.2% on a monthly basis. Inflation rates in five divisions were higher than the national average.
These include food and non-alcoholic beverages (32.2%); restaurants and lodging services (27.1%); furnishings, household equipment, and routine household maintenance (32.2%); alcoholic beverages, tobacco, and narcotics (39.0%); and personal care, social protection, and other goods and services (35.4%).
Dr. Ernest Addison, the governor of the Bank of Ghana, also remarked, saying that the sharp decline in interest rates has validated the central bank.
Dr. Addison stated that the Bank of Ghana has developed monetary policies to maintain economic stability through efficient cooperation with the Ministry of Finance.
Dr. Addison stated, “The policy mix under the IMF-supported PC-PEG program is gradually yielding positive results,” at the same event as the President. Headline inflation dropped from a peak of 54.1 percent in December 2022 to 35.2 percent in October 2023, and it is currently only 26.4%.
“I kept telling people that December 2021 inflation was 12.7% and that we shouldn’t be judged by the events of 2022. As you are aware, our critics have made a lot of noise and have celebrated the high rate of inflation that has been reported. We now have proof that the inflation of 2022 was an isolated incident, and we are swiftly regaining our pre-crisis level of living.
