Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, predicts the inflation rate will drop to 8% ± 2% by year-end, from 23.1%. This statement highlights government efforts to stabilize the economy amidst a serious cost-of-living crisis. Recent data shows a decline in inflation driven by food prices, although it remains one of the highest in the past ten months.
Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, announced a projected decrease in the nation’s inflation rate, forecasting it to reach 8% plus or minus 2% by the year’s end. This marks a significant reduction from the current rate of 23.1%, signifying an anticipated decline of 13% to 15% in headline inflation. This assertion was made during an X Space discussion on March 9, 2024, highlighting the government’s focus on economic stabilization amid a worsening cost-of-living crisis.
During the discussion, Dr. Forson stated, “There is a significant cost-of-living crisis, and it is getting worse. We need to take steps to reverse this trend.” He further emphasized that measures such as fiscal discipline will be crucial for consolidating and stabilizing the economy. The goal remains a reduction in inflation to the target rate by year’s end.
The inflation rate for February 2025 recorded a slight decline to 23.1%, down from 23.5% in January, primarily attributed to decreasing food inflation. Prof. Samuel Kobina Annim, the Government Statistician, acknowledged this drop, stating it resulted from sustained reductions in food prices over the past four months.
While the latest figure shows a decline, Prof. Annim noted that the February inflation rate remains the third-highest recorded in the last ten months, indicating persistent inflationary pressures in the economy.
In summary, the Ghanaian finance minister projects a significant reduction in inflation to approximately 8% by the end of 2024, down from the current 23.1%. The focus is on fiscal measures to address the rising cost of living, with recent data showing a slight decline influenced by food inflation. However, the enduring high inflation rates reveal ongoing challenges for policymakers.
Original Source: www.ghanaweb.com
