Ghana’s consumer price inflation rose marginally to 18.9 percent year-on-year in May from 18.7 percent in April, according to the statistics office. This happened despite the inflation-curbing stance of the Bank of Ghana which kept its benchmark interest rate at 26 percent at its last Monetary Policy Committee (MPC) meeting.
The central bank had kept rates unchanged for the third consecutive meeting now, hoping that would bring down inflation which remains above government targets.
The Ghanaian government is grappling with chronically large budget deficits and declines in the currency. To address this, it is implementing a three-year aid programme with the International Monetary Fund.
However, despite its economic worries, the International Monetary Fund (IMF) expects Ghana’s economy to expand 4.5 percent this year, after recording its lowest growth in two decades at 3.9 percent in 2015.