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.
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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.
“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 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”.
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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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