Finance Minister Nominee Vows to Cut Inflation to Single Digits
Dr. Cassiel Ato Forson, the nominee for Finance Minister under President John Mahama’s administration, has pledged to reduce Ghana’s inflation rate to single digits through strict fiscal discipline and expenditure controls.
During his vetting on January 13, Dr. Forson emphasized the need for robust economic measures to stabilize the economy.
He highlighted cutting unnecessary government spending and reducing reliance on borrowing as key strategies for achieving this goal.
“My priority is to bring inflation down to 8% plus or minus two,” Dr. Forson stated. “By introducing strong expenditure-side measures, we can stabilize inflation and reopen the domestic bond market, reducing dependence on the treasury bill market.”
Headline inflation rose modestly to 23.8% in December 2024, up from 23% the previous month, reflecting mounting pressures in food prices and pushing past the Bank of Ghana’s revised year-end target of 20%.
The increase was driven by a sharp uptick in food inflation, which climbed to 27.8% from 25.9% in November. By contrast, non-food inflation eased slightly to 20.3%, down from 20.7%, underscoring a divergent trend between the two key sectors.
Inflation for locally produced goods accelerated to 26.4%, up from 25.4% in November, while imported goods registered a marginal rise to 17.9%, compared to 17.6% the prior month.
Alcoholic beverages, tobacco, and narcotics saw the highest inflation at 28.4%, followed by food and non-alcoholic beverages at 27.8%.
Housing, utilities, and fuel costs also remained elevated, with inflation for the category at 26.3%, all significantly above the national average.
