Ghana’s Minister of Finance, Dr. Cassiel Ato Forson, predicts a reduction in inflation to 8% ± 2% by year-end, down from 23.1%. This aims to address the escalating cost-of-living crisis through fiscal discipline and economic stabilization measures. Recent trends highlight a slight decline in inflation, attributed mainly to falling food prices, but rates remain high historically.
Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, forecasts the inflation rate to decrease to 8% ± 2% by year-end, down from the current 23.1%. This projected decline signifies a significant reduction of approximately 13% to 15% in headline inflation. He shared this estimate during a discussion on March 9, 2024, underlining the government’s efforts to stabilize the economy amid a worsening cost-of-living crisis.
In his remarks, Ato 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 emphasized that stabilizing the economy through fiscal discipline is crucial for achieving stable economic conditions.
The most recent inflation data for February 2025 shows a slight decrease to 23.1%, down from 23.5% in January, primarily attributed to a decline in food inflation. Government Statistician, Prof. Samuel Kobina Annim, confirmed that the overall decrease in food prices over the past four months has contributed to this reduction in inflation.
However, despite this slight decline, Prof. Annim noted that the February annual inflation rate remains the third-highest recorded in the previous ten months, indicating ongoing challenges in managing inflation effectively.
The projection from Dr. Ato Forson reflects the government’s proactive approach to combating inflation and managing the economic crisis in Ghana. With a target inflation rate aimed at 8% by the end of the year, substantial measures towards fiscal discipline are required. Recent statistics show a small reduction in inflation, yet challenges remain as the economy navigates through high inflation rates.
Original Source: www.ghanaweb.com
