The central bank is very optimistic that the 2013 end of year inflation will settle at 13.1 percent, although it is above the target band of 9.2 percent which has breached the 2013 target.

According to the governor of the Bank of' Ghana, Dr. Henry Kofi Wampah, "our forecasts show that inflation will, track back to the target band- of 9.2 by the end of 2014, barring any new shocks".

The central bank says the upside risks identified earlier had actually crystalized in the form of pass-through of petroleum price and electricity tariff adjustments, as well as continued fiscal and exchange rate pressures. However, it is expected that the fiscal measures announced in the 2014 budget, if realized, would mitigate some of the pressures.

Headline inflation rose from 11.5 percent in August to 13.1 percent in October. Non-food inflation was the main driver as it picked up from 14.2 percent to 17.7 percent while food inflation declined from 7.9 percent to 6.9 percent. Interest rates in the country remained stable in the wake of Bank of Ghana's decision to maintain the policy rate at 16 percent.