Audio By Carbonatix
Ghana’s inflation will average 15% in 2025 and 10% in 2026, Fitch Ratings has revealed.
This will be down from 23% in 2024, helped by the large appreciation of the cedi since April 2025, a still tight monetary policy stance and fiscal consolidation.
According to the UK-based firm, the size of the pass-through of exchange rate appreciation is uncertain, but it believes it will rapidly contribute to a moderation in domestic inflation, backed up by lower oil prices and international food prices.
It also projected that the Bank of Ghana will start cutting its policy rate in July 2025.
Ghana's year-on-year inflation rate for May 2025 dropped to 18.4%, its lowest point since February 2022.
This marked a continued decrease for the fifth consecutive month, down from 21.2% in April 2025. The primary driver of this decline is a significant drop in transport fares, attributed to lower fuel prices, and a slowdown in the rate of increase for non-food items.
Resilient Growth
Meanwhile, Fitch said the real Gross Domestic Product (GDP) growth has proved resilient throughout the restructuring process, at 3.1% in 2023 and 5.7% in 2024.
“We anticipate growth will remain solid, at 4% in 2025 and 4.5% in 2026, on a rebound in agricultural output after a steep decline in cocoa production in recent years, and a continued expansion of the industrial and services sectors”, it added.
Latest Stories
-
ADB lauds gov’t’s agricultural initiatives, commits to providing needed support
6 minutes -
US Embassy hosts World Cup draw watch party, fans upbeat about Ghana’s chances
8 minutes -
If Sammy Darko were in Police Service, he wouldn’t even be a Superintendent – Martin Kpebu
23 minutes -
Minister rejects claims of political bias as NDC Regional chair is named North East Best Farmer
31 minutes -
Notorious Ashaiman robber arrested in joint police operation
37 minutes -
OSP says probe into SML predates Manasseh Azure Awini’s petition
1 hour -
OSP is acting lawlessly; it had zero jurisdiction to arrest Martin Kpebu – Kofi Bentil
1 hour -
The evolution of smokeless alternatives to smoking
1 hour -
Mahama commissions National Signals Bureau Regional Command in Ho
1 hour -
Helping adult smokers make better choices through harm reduction
2 hours -
Domestic Violence Secretariat trains market executives as paralegals in Bono Region
2 hours -
CPA slams PURC over 2026 tariff hikes, calls increase “unrealistic” and unfair to consumers
2 hours -
Martin Kpebu was unhappy with move to demand Adom-Otchere’s landed property – Lawyer
2 hours -
US jails Nigerian fraud mastermind for 20 years over nationwide bank scam
2 hours -
US jails Nigerian fraud mastermind for 20 years over nationwide bank scam
3 hours
