World Bank warns of rising inflation in emerging economies including Ghana in 2026

Inflation in emerging market and developing economies, including Ghana, is expected to rise in 2026, driven largely by higher global energy prices and ongoing supply disruptions, according to the latest Commodity Markets Outlook from the World Bank.

The report projects that consumer price inflation across these economies will increase to around 5.1 percent in 2026, reversing earlier expectations that inflationary pressures would ease.

The World Bank attributes the projected rise mainly to recent energy price shocks and geopolitical tensions, which are increasing production and transportation costs across multiple sectors of the global economy.

It notes that higher fuel and commodity prices are likely to feed into the cost of goods and services, putting additional strain on household incomes in developing countries.

The report further cautions that inflationary pressures could worsen if disruptions in global energy markets continue.

Under a more severe scenario, where oil prices rise sharply due to prolonged geopolitical instability, inflation in emerging economies could climb between 5.3 and 5.8 percent in 2026—levels the Bank says would be among the highest in the past decade.

Rising energy costs are also expected to slow real income growth, weaken consumer demand, and increase operational expenses for businesses across these economies.

The World Bank adds that central banks in many developing countries may respond by maintaining tighter monetary policies, a move that could raise borrowing costs and potentially slow investment growth.

Overall, the outlook underscores the vulnerability of emerging and developing economies to global commodity price shocks, particularly for countries that depend heavily on imported energy.

Prince Antwi

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