Finance Minister Predicts Steady Decline in Inflation amist Cedi depreciation
“Inflation is declining. Headline inflation declined by 31% from 51.5% at the end of 2022 to 23.2% at the end of December 2023. This was before inflation inched up slightly to 25.8% in March 2024 due largely to base effect but we have seen it trending downward again.
The Minister for Finance, Hon Mohammed Amin Adam has forecasted a steady decline in the country’s inflation rate despite the recent cedi depreciation to major trading currencies in the world.
At a presser on May 24, 2024, Hon Amin Adam expressed his optimism.
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“Inflation is declining. Headline inflation declined by 31% from 51.5% at the end of 2022 to 23.2% at the end of December 2023. This was before inflation inched up slightly to 25.8% in March 2024 due largely to base effect but we have seen it trending downward again.
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“The downward trend is expected to continue over the medium term horizon with inflation returning to the target band of 8+ or -2% by 2025.”
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His confidence is premised on the “fiscal consolidation effort of government in tightening monetary policy, exchange rate stability as well as improved food production locally”.
Currently, inflation stands at 25% while the cedi is trading around GHC15 to a dollar and around GHc19 to the pound sterling.
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