Ghana’s Inflation Rate Projected to Reach 8% by Year-End: Insights from Finance Minister

Minister of Finance, Dr. Cassiel Ato Forson, anticipates Ghana’s inflation rate will decline to around 8% by year’s end from the current 23.1%. This prediction highlights the government’s commitment to tackling the cost-of-living crisis through fiscal discipline and economic stabilization efforts. February’s inflation has slightly decreased, primarily due to food price reductions, but it remains one of the highest rates observed in recent months.

Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, has forecasted that the nation’s inflation rate will decrease to approximately 8% by the end of the year, a reduction from the current rate of 23.1%. His statement, made during an X Space discussion on March 9, 2024, reflects the government’s efforts to stabilize the economy amid the current cost-of-living crisis.

During the discussion, Dr. Forson remarked on the severity of the cost-of-living crisis, outlining the need for decisive actions to reverse the prevailing trend. He cited measures aimed at consolidating economic stability through fiscal discipline, underscoring that the target inflation rate is an 8% threshold with a margin of plus or minus 2%.

As of February 2025, Ghana’s inflation has declined marginally to 23.1%, down from 23.5% in January, primarily due to decreasing food inflation rates. This decline was reported by Government Statistician, Prof. Samuel Kobina Annim, who noted consistent reductions in food prices over the past four months.

However, it is essential to recognize that despite the slight decrease, the February inflation rate is still considered the third-highest in the last ten months, indicating persistent economic challenges.

In summary, Dr. Cassiel Ato Forson projects that Ghana’s inflation rate may decline to 8% by year’s end, reflecting critical government measures aimed at addressing the economic turmoil. Despite recent minor reductions in the inflation rate, food inflation remains a crucial concern as the government navigates the ongoing cost-of-living crisis.

Original Source: www.ghanaweb.com