Inflation in emerging economies to rise to 5.1% in 2026 – World Bank
Inflation across emerging market and developing economies, including Ghana, is expected to rise in 2026, driven largely by higher global energy prices and supply disruptions, according to the latest Commodity Markets Outlook released by the World Bank.
The report projects that consumer price inflation in emerging markets and developing economies will increase to about 5.1 percent in 2026, reversing earlier expectations that inflation would ease this year.
According to the World Bank, the upward pressure on inflation is mainly linked to recent energy price shocks and geopolitical tensions, which are pushing up input costs across several sectors of the global economy.
The report notes that rising costs of fuel and other essential commodities could filter through to a wide range of consumer goods, placing additional pressure on household budgets in developing economies.
It further warns that inflationary pressures could intensify if disruptions in global energy markets persist.
Under a scenario where oil prices rise sharply due to prolonged geopolitical tensions, inflation in emerging economies could climb to between 5.3 and 5.8 percent in 2026, one of the highest levels recorded in the past decade.
Higher energy costs are expected to slow real income growth and weaken consumer demand in many emerging economies, while also raising operational costs for businesses.
The World Bank notes that central banks in many developing economies may respond to rising inflation by maintaining tighter monetary policy, which could further affect borrowing costs and investment activity.
The outlook highlights the vulnerability of emerging markets to global commodity shocks, particularly for economies that rely heavily on energy imports.
Source: citinewsroom.com by Daniel Oduro-Mensah
