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0 News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/rising-inflation-in-ghana-and-nigeria-poses-threat-to-economic-growth-deloitte-warns/
The continuous rise in inflation in Ghana and Nigeria is expected to hinder economic growth, according to Deloitte West Africa’s November 2024 Inflation Update.
The professional services firm has highlighted the dual pressure of escalating business costs and reduced consumer spending, which is exacerbating the cost of living crisis in both countries.
In Ghana, inflation reached 23% in November 2024, marking the third consecutive month of rising prices. This increase is largely attributed to higher food prices and spending related to the ongoing elections. In Nigeria, headline inflation also surged to 34.60%, driven by rising costs of goods and services.
Deloitte anticipates that inflation will likely rise further in December 2024 due to the seasonal uptick in Christmas-related spending. The Economist Intelligence Unit forecasts an average inflation rate of 22.4% for Ghana and 33.2% for Nigeria for the entirety of 2024. However, inflation rates are projected to decline in 2025, with expectations of 15.2% for Ghana and 27.7% for Nigeria, aided by foreign exchange stability, trade policy adjustments, and base effects.
In Ghana, inflation in November 2024 was most pronounced in the categories of Alcoholic Beverages, Tobacco and Narcotics (30%), Housing, Water, Gas and Electricity (29.2%), and Health (22.2%), which have all contributed significantly to the overall increase in the cost of living.
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/rising-inflation-in-ghana-and-nigeria-poses-threat-to-economic-growth-deloitte-warns/
