GCB Capital Research anticipates a potential decline in inflation that may continue into the fourth quarter of 2023.

Despite inflationary pressures, increased fuel prices, and currency instability, the research division suggests that the country's inflation could move in a downward direction.

Nonetheless, the report emphasizes the existence of certain factors that could mitigate the expected downward trajectory in inflation. These factors encompass adjustments in utility tariffs, seasonal pressures associated with festive periods, heightened corporate demand for foreign exchange (FX), and potential increases in petroleum prices.

“Accordingly, we expect a favourable base drift in quarter 4, 2023 to trigger a more moderate decline in headline inflation in October 2023, followed by a potentially sharper decline in November. Headline inflation could print 32% by November 2023 if the anticipated upside risks to inflation from the seasonality effects and petroleum price pressures soften sufficiently,” GCB Capital Research said.

In the same vein, the country's inflation rate in September 2023 decreased to 38.1%, down from the 40.1% reported in August 2023.

As per data provided by the Ghana Statistical Service, both food and non-food inflation exhibited declines, reaching 49.4% and 29.3% respectively for September 2023.

Moreover, inflation for domestically produced goods was at 37.3%, while that for imported items hovered around 39.9%.