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Economist Projects 9% Inflation by Year-End if FX Stability Holds

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Economist Projects 9% Inflation by Year-End if FX Stability Holds

Ghana’s headline inflation fell to 11.5% in August, its lowest level in nearly four years, bolstering hopes of stronger price stability in the second half of 2025.

The figure, released by the Ghana Statistical Service, marked the eighth consecutive month of decline and came in below the government’s year-end target of 11.9%.

Month-on-month inflation eased by 1.3 per cent, offering some relief to households still grappling with high living costs.

William Baah-Boateng, Professor of Economics at the University of Ghana, has said the decline in inflation reflected a mix of exchange rate stability, seasonal harvest effects and cautious fiscal management.

Asserting that the cedi’s appreciation earlier this year, coupled with improved food supply and disciplined government spending, had helped ease price pressures.

He cautioned, however, that maintaining currency stability would be crucial to sustaining the downward trajectory of inflation.

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“If the exchange rate does not misbehave and we are able to keep it at GH¢12 till the end of the year, we should end the year with an inflation rate of 9%,” he stated.

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