Inflation in Ghana Likely to Settle Between 4 and 6 Percent by Year End — Projects BoG Governor

The Governor of the Bank of Ghana Dr Johnson Asiama has projected that inflation is likely to decline to between 4 and 6 percent by the end of the year. This marks one of the most optimistic inflation forecasts Ghana has seen in several years reflecting renewed macroeconomic stability and improved monetary conditions.

Dr Asiama delivered the projection during the 127th Monetary Policy Committee briefing where he highlighted key factors driving the disinflation trend. He explained that sustained fiscal discipline improved foreign exchange management and structural reforms across various economic sectors are working together to create a more stable price environment.

He noted that core inflation which excludes volatile items such as fuel and food is already trending between 5 and 7 percent showing that underlying inflationary pressures are easing significantly. According to him the monetary authorities have taken deliberate steps to guide inflation downward without disrupting economic activity.

Dr Asiama said the central bank will continue applying a forward looking monetary policy approach. While there may be room for a gradual reduction in interest rates he emphasized that any adjustment will be done cautiously to maintain macroeconomic stability and prevent a resurgence of inflation.

The governor also underscored the importance of maintaining confidence in Ghana’s economic policy direction. He said the declining inflation rate sends a positive signal to investors businesses and households demonstrating that the country is steadily overcoming recent economic challenges.

Economic analysts have welcomed the projection noting that a lower inflation rate could reduce borrowing costs stimulate investment and ease pressure on households. Businesses may also benefit from more predictable prices enabling them to plan better and potentially expand production.

Despite the positive outlook Dr Asiama cautioned that external risks remain. He cited fluctuations in global commodity prices geopolitical tensions and tightening financial conditions as factors that could affect Ghana’s price stability. Domestically he pointed to tax adjustments and credit constraints as potential challenges.

Nonetheless he stressed that the Bank of Ghana remains committed to sustaining the reforms that have supported recent gains. With the right mix of policy discipline and timely interventions he believes inflation can be anchored firmly within the projected range.

For ordinary Ghanaians a decline in inflation could bring relief as it may slow the rapid increases in the cost of food transport and essential services. If the forecast holds the country could enter the next fiscal year with improved purchasing power and renewed economic confidence.