Deloitte West Africa has disclosed that policy tightening, fiscal discipline, lower energy costs and a stable cedi will support a sustained decline in consumer prices.
In its April 2025 West Africa Inflation Update, it, however, cautioned against domestic inefficiencies, which it said will remain an upside risk to the ongoing downward trend.
Ghana recorded a 4th consecutive decline in inflation in April 2025 to 21.2%.
In that regard, the professional services said the Bank of Ghana will have more leeway to adjust monetary policy as inflation falls further.
The International Monetary Fund is projecting a higher year-end inflation rate for Ghana of 17.5% compared to the government’s 12%.
Deloitte said food inflation remains a significant driver of cost-of-living pressures despite the decline to 25%. Inflation for oils and fats recorded the highest inflation in the food and beverage sub-classes.
The monthly inflation (April 2025) increased to 0.8% from 0.2% in March 2025, indicating a resurgence in inflationary pressures.
Lower fuel prices to support further decline in inflation in Nigeria
In Nigeria, headline inflation changed its course, falling to 23.71% in April 2025 from 24.23% in March 2025.
All sub-indices also moved in tandem with core inflation at 23.39%, recording the highest decline.
Deloitte said the base effects and lower fuel prices will support a further decline in inflation in subsequent months.
However, renewed naira volatility and tariff hikes could limit the pace of decline.
It nonetheless said the tightening monetary policy stance is likely to continue despite the projected decline in inflation.
The Monetary Policy Committee left its benchmark interest rate unchanged at 27.5% at its May 2025 meeting.
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