An economist, Professor William Baah-Boateng, has projected that Ghana’s downward inflation trend is likely to continue, driven by several key factors.

According to him, the inflation rate could fall to about 9% by the end of 2025 if the exchange rate remains stable. Ghana’s inflation declined from 12.1% in July to 11.5% in August, the lowest in four years.

The economist noted that the exchange rate has played a significant role in the continuous decline in inflation, with the cedi’s appreciation contributing substantially.

Here are the key drivers of inflation

“If we have month-on-month inflation coming down, then it is good. But it is attributed to a number of factors,” he was quoted by citinewsroom.com

Professor Baah-Boateng said inflation is likely to continue on a downward trajectory and could hit 9% if the exchange rate remains stable.

“Appreciation happened between April and May. So you expect that by July and August, the effect on prices will not be as much as before, but it will still have some impact.

“I expect that where it has been, if the exchange rate does not misbehave and we are able to keep it at GH¢12 till the end of the year, we should end the year with an inflation rate of 9%,” he projected.

According to the Ghana Statistical Service, food inflation remains the major driver of overall inflation, although prices continue to decline.

“From the food end, we will continue to harvest, which is good for us, especially as we have had quite reasonable rain,” he added.

SSD/MA