The Institute of Statistical, Social and Economic Research (ISSER) has stated that the government’s inflation rate target of 15% for 2024 is achievable.

In its analysis of the impact of the 2024 Budget on the private sector, the research think tank said “While the target is an ambitious one, it is achievable if and only if the government and Bank of Ghana remain resolute in pursuing prudent fiscal and monetary policies respectively”.

According to the research organisation, being under the IMF programme may do the magic given the “usual political business cycle”.

It further said the effectiveness of monetary policy to an appreciable extent depends on the public’s expectations, “Implying the management of expectations of the general public is key”

“Government policies to boost food production and facilitate its movement from production areas to major markets (i.e., investment in infrastructure – road and rail networks) will be extremely helpful as inflation has primarily been driven by the food and non-alcoholic component of the CPI [Consumer Price Index]”, it pointed out.

Continuing, ISSER said the end-period rate for 2024 will be a major test of government’s commitment to this medium-term targeted rate of inflation.

“Historically, even though governments have missed the targeted rates of inflation in election years, the deviations have not been very huge (except in 2000)”, it mention.

However, for most of these periods, it noted that the country was under an IMF programme.