President Mahama has projected that single-digit inflation will be reported by the country at the end of the first half of the year.

In an address at the Ghana-EU Business Forum held at the Kempinski Hotel in Accra yesterday, President Mahama stated that his government will achieve this feat by effecting a tighter monetary policy rate, cutting expenditure, and reducing debt accumulation.

"Inflation, which peaked at 23.8% at the end of 2024, has begun to ease, falling to 21.2% in April 2025 largely due to moderation of both food and nonfood inflation and prudent fiscal management. We're projecting to achieve a single-digit inflation trajectory by the middle of 2026.”

President Mahama noted there are positive signs that the country is recovering in a disciplined and inclusive way, pointing to the fact that Ghana’s international reserves have increased from $8.9 billion in December 2024 to $10.6 billion by April 2025. This is equivalent to almost five months of import cover.

"This reflects enhanced export earnings, particularly from gold and non-traditional exports, as well as timely disbursements for our multilateral partners. These figures, though early in the year, are clear signs of a disciplined and inclusive economy," the president added.

He stressed that the government is enforcing contract sanctity and implementing firm measures to safeguard investor rights.In March, the Monetary Policy Committee by a majority decision, decided to raise the

Monetary Policy Rate by 100 basis points to 28.0 percent to re-anchor the disinflation process. As inflation becomes firmly anchored, the Committee noted that it will reassess the scope for a gradual easing in the policy stance.Ghana ended the year 2024 with 23.8% inflation. In January 2025, inflation slightly declined to 23.5%. And since then it has continued to ease. In February inflation declined to 23.1%; it saw another decrease in March to 22.4% and declined again in April to 21.2%.Discussing improvement with macroeconomic variables - exchange rate—the cedi has appreciated by approximately 16% against the US dollar, contributing to a decline in inflation to 21.2% by May 2025.The current inflation rate marks a significant milestone, as Ghana’s inflation rate skyrocketed to 31.26 percent in 2022 due to disruptions and cedi depreciation.

During the 2025 budget presentation on March 11, Finance Minister Dr. Cassiel Ato Forson announced the government’s objective to reduce inflation to 11.9% by the end of the year. The president’s projection suggests that the government may have to re-evaluate its earlier inflation projection.Fitch Solutions has also forecasted a more conservative outlook, predicting Ghana's inflation will average 18.8% in 2025 and end the year at 13.6%. This projection suggests that while inflation may decrease, it might not reach the government's ambitious target.The International Monetary Fund (IMF) also provided its assessment, projecting Ghana's inflation to end 2025 at 17.5%, which is also higher than the government's target.

With the unprecedented performance of the cedi in recent times and the calls for reduction in prices of goods and services to reflect the gains in the cedi, stakeholders continue to monitor the financial sector to observe how the country’s inflation rate will be affected.