By: Belinda Nketia
Ghana’s Finance Minister, Dr. Cassiel Ato Forson has unveiled a 5-point strategy to tackle inflation and stabilize the economy, pledging targeted actions across fiscal policy, exchange rate management, utility pricing, agriculture, and monetary coordination with the Bank of Ghana.
Presenting the 2025 Mid-Year Budget Review in Parliament on Th24th July 2025, the Minister said the government is committed to a deliberate and disciplined economic recovery plan that is already showing strong results.
“We pledge to pursue the following to reduce inflation,” he told Parliament, before laying out five key interventions.
1. Aggressive Fiscal Consolidation
The government will implement a tough fiscal consolidation drive aimed at reducing the fiscal deficit and public borrowing. This move, the Minister said, is necessary to ease inflationary pressure and improve long-term macroeconomic stability.
2. Exchange Rate Stabilization
The second pledge focuses on stabilizing the exchange rate to prevent imported inflation. This is expected to impact the pricing of essential items such as fuel, transportation, sugar, rice, and cooking oil which are commodities that are sensitive to forex fluctuations.
3. Targeted CPI-Based Interventions
The third pledge targets items with significant weight in Ghana’s Consumer Price Index (CPI) basket, including utilities and public transport. The goal is to reduce their costs and thereby lower the overall inflation rate.
4. Bank of Ghana Collaboration on Monetary Policy
The fourth commitment involves working closely with the Bank of Ghana to adopt a strong monetary policy stance. The central bank will deploy liquidity management tools to support the broader disinflation agenda.
5. Agricultural Transformation to Tackle Food Inflation
Finally, the Minister pledged to scale up investment in agriculture as a long-term strategy to reduce food inflation and drive economic transformation.
“These are not random improvements,” the Minister said. “The drastic fall in inflation is not by chance or sheer luck, but a result of hard work and deliberate government policies.”
He cited recent figures to support the progress, noting that consumer price inflation has dropped from 23.8% in December 2024 to 13.7% in June 2025 which is a significant decline attributed to these focused interventions.
The Finace Minister expressed optimism that, with continued commitment, Ghana’s GDP growth could exceed the 2025 target of 4%, signaling a stronger-than-expected economic recovery.
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