The World Bank has warned that inflation in emerging market and developing economies, including Ghana, is expected to rise in 2026, largely due to higher global energy prices and ongoing supply disruptions.
In its latest Commodity Markets Outlook, the Bank projects that inflation in these economies will increase to about 5.1% in 2026, reversing earlier expectations that price pressures would ease.
It explains that recent spikes in energy prices, along with geopolitical tensions, are pushing up costs across many sectors of the global economy.
As a result, higher fuel and commodity prices are likely to feed into the cost of goods and services, increasing pressure on household budgets.
The report also cautions that inflation could rise even further if global energy disruptions continue.
In a more severe scenario, where oil prices surge due to prolonged geopolitical instability, inflation could climb to between 5.3% and 5.8%, one of the highest levels in the past decade.
According to the World Bank, rising energy costs could slow income growth, weaken consumer spending, and increase operating costs for businesses in many developing countries.
It adds that central banks may respond by keeping interest rates high, which could make borrowing more expensive and slow down investment.
Overall, the report highlights how vulnerable emerging economies are to global commodity shocks, especially those that depend heavily on imported energy.
