Inflation likely to experience an uptick in August – Market analyst

A market analyst is projecting a slight uptick in inflation for the month of August despite a drop in July at 20.9 per cent.

They attribute this development to the fast rate of the Cedi’s depreciation against the dollar.

The predictions come ahead of the Ghana Statistical Service’s (GSS) monthly report on inflation which is expected to be announced on Wednesday, September 11.

In an interview with Citi Business News, Economist and Fixed Income analyst, Wilson Zilevu disclosed that subsequent months until the end of the year are likely to experience a downward trend.

“In August, we expect a slight uptick in inflation, largely due to a low base effect and basically some slight increases in non-food items stemming from the Cedi’s volatility.

“Going forward, we expect the disinflation trend to continue, especially considering the fact that the Bank of Ghana (BoG) has created some kind of centralised platform that offers all forex bureaux some kind of price guidance. So we expect that this should stabilise the Cedi a bit.”

Source: Citi Business News