RFA Breakfast Paper - June 3, 2026
Ghana Inflation Rises to Four-Month High on Food Price Pressures
Annual inflation in Ghana accelerated for a second consecutive month to 3.7% in May 2026, up from 3.4% in April, reaching its highest level since January. The increase was driven primarily by food and non-alcoholic beverage inflation, which rose to 3.3% from 2.2%. Higher oil and fertilizer costs associated with the Middle East conflict, combined with the continuing effects of climate-related challenges on agricultural production, contributed to stronger food price pressures. In contrast, non-food inflation eased marginally to 4.1% from 4.2%, helping to limit the overall rise in consumer prices. On a monthly basis, consumer prices increased by 1.1% in May, slightly faster than the 1.0% rise recorded in April, indicating that inflationary pressures continued to build despite remaining at historically low levels by Ghanaian standards. The latest data suggest that external commodity price shocks and agricultural supply challenges are beginning to feed through to domestic prices, posing a potential challenge for policymakers seeking to preserve recent gains in inflation stability.
U.S. Equities Decline as Investors Turn Defensive Amid Oil Price Surge
U.S. equity markets closed lower on Wednesday, ending the S&P 500’s nine-day winning streak as investors shifted toward a more cautious stance. The S&P 500 declined 0.7%, while the Nasdaq Composite fell 0.9% and the Dow Jones Industrial Average lost 1.2%. Rising oil prices and higher Treasury yields weighed on risk appetite, prompting profit-taking after the market’s recent rally. Sector performance reflected the defensive tone of the session, with energy and consumer staples leading gains, while technology and financial stocks lagged. Investor sentiment was further dampened by uncertainty surrounding ongoing U.S.–Iran negotiations, which contributed to the rise in oil prices and renewed concerns about potential disruptions to global energy markets. Small-cap stocks underperformed as elevated energy costs and tighter financial conditions clouded the outlook for more domestically focused companies. Although the decline interrupted the market’s recent upward momentum, it appears to reflect a healthy period of consolidation as investors reassess valuations and geopolitical risks following strong gains in both U.S. and global equities.
NGX Sell-Off Deepens as Profit-Taking Extends Weekly Losses
The Nigerian equity market remained under pressure on Wednesday as persistent profit-taking across major sectors extended the market’s recent downturn. The NGX All-Share Index (ASI) declined by 1.44%, shedding 3,554.05 basis points to close at 243,132.61, while market capitalization fell by ₦2.28 trillion to ₦155.94 trillion. The latest sell-off further deepened the market’s weekly losses, with more than ₦4.5 trillion wiped off investors’ wealth since the start of the week. The broad-based decline reflects continued portfolio rebalancing and profit-taking activities following the market’s strong performance earlier in the year. Interestingly, trading activity strengthened despite the negative market close, indicating that investor participation remained robust. Total volume traded rose by 28.41% to 922.97 million units, while the value of transactions increased by 44.25% to ₦42.27 billion across 69,332 deals. The rise in both volume and value suggests that the current market weakness is being driven by active selling rather than a lack of investor interest. While sentiment remains cautious in the near term, the elevated level of trading activity points to ongoing portfolio repositioning as investors assess valuation opportunities amid the market’s correction.
