Inflation has accelerated to 19.4 percent year on year in Ghana at the end of March, RMB revealed. According to the bank, the latest print is the highest ever seen over the past decade as food and fuel prices continue to surge. Food inflation came in at 22.4 percent year on year, indicates RMB, which was the main protagonist for the higher print.
The Monetary Policy Committee (MPC) opted to frontload hikes last month when it increased benchmark rates by 250 basis points (bps). RMB reports that the central bank anticipates that inflation will be a challenge in the market for the next few months. “As such, we believe that while there are still risks for further hikes, we expect the MPC to wait a few months to see whether the effects of the March hike will have an impact on inflation expectations,” RMB says.