Ghana’s Inflation Rate Projected to Decline to 8% by Year-End

Ghana’s Finance Minister, Dr. Cassiel Ato Forson, predicts that the inflation rate will reduce to approximately 8% by year-end from the current 23.1%. This reflects a strategic governmental commitment to combating the cost-of-living crisis through stabilizing economic measures. Despite a minor decrease in inflation, challenges remain as the February rate is still notably high compared to previous months.

Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, has forecasted a reduction in the nation’s inflation rate to approximately 8% with a margin of ±2% by the end of the year, a significant drop from the current rate of 23.1%. This projection indicates a reduction of 13% to 15% in headline inflation, demonstrating the government’s determination to stabilize the economy amid rising costs of living.

During a recent X Space discussion held on March 9, 2024, Dr. Ato Forson underscored the urgent necessity to address the escalating cost-of-living crisis. He stated, “There is a significant cost-of-living crisis, and it is getting worse. We need to take steps to reverse this trend. Some of the measures include stabilising and consolidating the economy through fiscal discipline to ensure economic stability.”

The inflation rate slightly decreased to 23.1% in February 2025, down from 23.5% in January, primarily due to declining food inflation. Government Statistician Prof. Samuel Kobina Annim confirmed this drop, noting that it results from a continuing decline in food inflation observed over the last four months.

Nevertheless, Prof. Annim cautioned that February’s inflation rate remains the third highest recorded in the previous ten months, indicating persistent inflationary pressures despite some improvements.

In conclusion, Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, has set a target to reduce the inflation rate to around 8% by the end of the year, a substantial decrease from 23.1%. This commitment reflects the government’s efforts to manage the ongoing cost-of-living crisis, backed by recent trends showing a slight decline in inflation rates, particularly in food prices. Continued vigilance and fiscal discipline will be essential to stabilize the economy further.

Original Source: www.ghanaweb.com