Ghana’s inflation rate may end the year at 11.5 percent as a stable currency helps negate the effects of utility tariff increases, central bank Governor Kofi Wampah said.
“We may have higher inflation in the next two months before we start coming back,” Wampah said in an interview in the capital, Accra. “We will continue to support the market with dollar offers as we build up more foreign reserves.”
The Bank of Ghana is boosting foreign-currency reserves through Eurobond sales and cocoa trade-finance loans, while investor confidence is returning to the bond market after the Supreme Court upheld President John Dramani Mahama’s victory in the December election, he said.
Consumer prices in the West African nation declined for the first time in seven months to 11.5 percent in August from 11.8 percent a month before, the statistics agency said Sept. 11.
Foreign-currency reserves increased to $5.8 billion in August from $5.3 billion in December, Wampah said on Sept. 18. Electricity tariffs will rise by 78.9 percent from tomorrow and water charges will go up by 52 percent, the Public Utilities Regulatory Commission said Sept. 25.
Inflation will return to the central bank’s target of 2 percentage points above or below 9 percent in the first half of 2014, Wampah said.