Professional services firm Deloitte has reiterated that the persistent rise in inflation in Ghana and Nigeria will hinder economic growth.
Businesses are facing increased costs, while consumers are cutting back on spending, which will negatively impact both economies.
Deloitte expects that monetary policy will continue in Nigeria, while the Bank of Ghana is likely to maintain the status quo, with the possibility of a rate hike if inflation continues to rise.
Rising food prices drove Ghana’s inflation to 23.8% in December 2024, marking the fourth consecutive increase.
Similarly, Nigeria’s headline inflation surged to 34.80%, fueled by festive-related spending.
In its inflation update, Deloitte West Africa noted, “The underlying inflation pressures, driven by food price volatility, exchange rate fluctuations, and global commodity prices, are expected to persist in 2025.”
Meanwhile, the Economist Intelligence Unit is forecasting average inflation rates of 27.7% and 15.5% for Nigeria and Ghana, respectively, in 2025.
It also stated that inflationary pressures are expected to ease from the more elevated levels seen in 2023 for all but a small handful of African countries—including Seychelles and Sudan.
“Inflationary pressures are expected to ease from the more elevated levels recorded in 2023 for all but a small handful of African countries—namely Angola, Seychelles, Sudan, and Tanzania, where country-specific factors will push up consumer price inflation,” the update concluded.
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