The current consistent fall in inflation over the past months, declining to 8% in October from 23% at the start of the year, shows macroeconomic stability while investor sentiment rebounds, financial market analysts have said.
Merban Capital, a local investment advisory firm, describes the sharp drop as a milestone that confirms the country’s steady recovery path.
The firm’s Head of Finance, Nelson Cudjoe Kuagbedzi, notes that the disinflation trend has been driven by a mix of prudent fiscal consolidation, a tight monetary stance by the Bank of Ghana, improved exchange rate stability, declining fuel prices, and increased food supply.
“We projected inflation to hit single digits this year because the underlying disinflationary triggers were already in place. Prudent fiscal management, a firm monetary posture by the central bank, relative currency stability, reduced fuel prices and excess food supply have all contributed to easing price pressures”, Nelson Cudjoe Kuagbedzi said in a radio discussion.
He added that the return to single-digit inflation strengthens Ghana’s near-term economic outlook and positions the country for renewed investor inflows.
“The 8% inflation clearly shows the economy is on the path of recovery and growth. We expect investor confidence to bounce back,” he noted.
On his part, the Country Senior Partner of PriceWaterhouse Coopers (PwC) Ghana, Vish Ashiagbor, expressed optimism that Ghana’s inflation will continue on its downward trend in the coming months, citing growing economic stability and improved coordination between fiscal and monetary policies.
Speaking at the 2025 PwC Cyber Forum in Accra, Mr. Ashiagbor noted that the steady drop in inflation to 8% signals renewed confidence in the economy and effective management by policymakers.
He said if the government maintains fiscal discipline and the private sector continues to respond positively, the country could experience even greater price stability.
“The fact that inflation has fallen to 8% reflects a stronger macroeconomic framework. If we sustain this momentum and build private sector confidence, we could see a more stable price environment,” Mr. Ashiagbor said.
By Adnan Adams Mohammed
