Ghana’s inflation rate is expected to increase significantly in 2027, with Fitch Solutions projecting annual average inflation to rise from 4.7% in 2026 to 11.3% in 2027.
The forecast points to renewed inflationary pressures in Ghana as the positive impact of exchange rate stability fades, while fiscal conditions ease moderately and money supply growth remains strong.
Exchange Rate and Money Supply to Drive Inflation
According to the UK-based research and analysis firm, the expected rise in Ghana’s inflation rate will be influenced by weaker exchange rate support, modest fiscal loosening and continued growth in the country’s money supply.
Fitch Solutions noted that broad money supply growth had already exceeded nominal Gross Domestic Product (GDP) growth by 17.1 percentage points in the second quarter of 2026.
The development could create additional inflationary pressure if the rapid expansion in money supply continues to outpace economic growth.
El Niño Could Push Up Food Prices
Fitch Solutions also identified the impact of the El Niño weather phenomenon as a potential risk to Ghana’s inflation outlook in 2027.
The firm said a strong El Niño event, expected to peak towards the end of 2026, has already contributed to rising global food prices.
For Ghana, higher international food prices could increase the cost of imported goods and create additional imported inflation in 2027.
Ghana Inflation Outlook for 2027
The latest projection suggests that Ghana could face renewed price pressures after a period of significant disinflation. Rising food prices, exchange rate developments, fiscal policy and money supply growth are expected to remain key factors influencing the country’s inflation trajectory.
The forecast will be closely watched by businesses, consumers, investors and policymakers as Ghana seeks to maintain economic stability and protect household purchasing power.
Fitch Solutions’ projection of 11.3% average inflation in 2027, if realised, would represent a substantial increase from the projected 4.7% average inflation in 2026.
Source: newsthemegh.com