Audio By Carbonatix
Fitch Solutions expect Ghana’s inflation to remain on a downward trajectory through the second half of 2025, underpinned by a stronger exchange rate.
It has also revised down its average inflation forecasts for Ghana to 15.4% in 2025 and 12.2% in 2026, from 17.1% and 13.9% previously.
According to the UK based firm, the adjustments follow a sharper-than-expected decline in headline inflation in June, which fell to 13.7% year-on-year from 18.4% in May 2025, its lowest level since December 2021.
“The drop in price pressures reflects the cedi’s 50% appreciation against the dollar in April and May alongside a decline in global energy prices amid uncertainty surrounding US trade policy”, it added.
Furthermore, it pointed out that subdued global energy prices and tighter fiscal policy will further support the disinflation process.
“While oil prices briefly spiked during the Iran-Israel war in June [2025], they have since moderated following a ceasefire and remain well below 2024 levels amid weak global demand—exacerbated by US tariffs—and rising oil supply”.
This, it explained will limit upside risks to Ghana’s near-term inflation outlook.
Meanwhile, the UK-based firm says the fiscal discipline under President John Mahama’s administration will take some demand out of the economy, which will have a cooling impact on price growth.
Indeed, the government expenditure fell to 4.0% of GDP in Q1 2025, down from 4.9% in the same period of 2024.
Latest Stories
-
Trump Media to merge with fusion energy firm in $6bn deal
22 minutes -
Trump expands access to cannabis in a major shift in drug policy
31 minutes -
Kennedy Center to be renamed Trump-Kennedy Center, White House says
42 minutes -
Australia announces gun buyback scheme in wake of Bondi attack
53 minutes -
TikTok owner signs agreements to avoid US ban
1 hour -
Democrats release latest batch of Epstein photos as justice department deadline looms
1 hour -
Nigeria apologises over Burkina Faso military flight that saw 11 servicemen detained
1 hour -
Museum knows ‘little to nothing’ about new display
2 hours -
Liverpool rappers in Somalia during clan conflict
2 hours -
Can Salah finally lift Afcon trophy as Morocco eye home glory?
2 hours -
HR exec in viral Coldplay clip speaks of abuse, threats and trying to find a new job
4 hours -
Police issue arrest warrant for suspect in Brown University attack, sources say
4 hours -
McIlroy wins Sports Personality of the Year 2025
4 hours -
Ecobank Ghana MD expresses gratitude to customers, staff at 9 Lessons & Carols Service
5 hours -
Ghana and Germany deepen economic partnership: A new era of investment and cooperation
6 hours
