"Ghana eyes 12% inflation target as fiscal and monetary policies align" – Government Statistician

Ghana’s Government Statistician, Dr. Alhassan Iddrisu, has expressed cautious optimism about the country’s inflation outlook, citing a strong blend of fiscal discipline, monetary interventions, and supply-side measures as key drivers toward achieving the 12% year-end inflation target.

Speaking at his maiden “Meet the Press” briefing in Accra on Wednesday, Dr. Iddrisu described the projected shift from a fiscal deficit of 3.9% in 2024 to a surplus of 1.5% in 2025 as a “significant fiscal proposition” that, if achieved, will meaningfully support efforts to lower inflation.

“If this is achieved, it would strongly contribute to the realization of the 12% target,” he stated.

Dr. Iddrisu emphasized the complementary role of monetary policy, pointing to the Bank of Ghana’s recent readiness to tighten policy in response to rising inflationary pressures, as seen in the last Monetary Policy Committee (MPC) decision.

“The Bank has shown that it will not hesitate to act when needed, and this alignment between fiscal and monetary policy is critical,” he noted.

Beyond demand-side controls, Dr. Iddrisu stressed the importance of addressing inflation from the cost side, especially with regard to the exchange rate and input costs.

“When the exchange rate depreciates, it affects input costs and ultimately raises prices. Tackling cost-push inflation is just as important,” he explained.

He further highlighted the vital role of real sector performance, particularly agriculture, in stabilizing prices.

“Supply-side interventions—especially those in the agriculture sector—must be implemented with urgency and consistency. This is where we can see real impact,” he said, adding that lessons could be drawn from similar efforts in other economies, such as France.

Dr. Iddrisu’s briefing also covered Ghana’s April 2025 Consumer Price Index (CPI), which recorded a year-on-year inflation rate of 21.2%, down from 22.4% in March, marking the fifth consecutive month of decline.

He concluded by reaffirming that while the outlook remains cautiously optimistic, coordinated policy implementation across fiscal, monetary, and real sectors will be crucial to achieving Ghana’s inflation goals and sustaining macroeconomic stability.

Story by: Joshua Kwabena Smith