Inflation could drop to 9% by end of 2025 – Prof. Baah-Boateng

Economist Professor William Baah-Boateng has projected that Ghana’s inflation could decline to about 9 percent by the close of 2025.

He noted that, provided exchange rate stability is sustained and fiscal discipline is maintained.

Speaking after the Ghana Statistical Service (GSS) announced that headline inflation had dropped to 11.5 percent in August 2025, Prof. Baah-Boateng said the country is on track to record further reductions in inflation if the cedi remains stable. He noted that the downward trend signals greater macroeconomic stability and a potential easing of cost-of-living pressures.

The economist’s projection that Ghana’s inflation could fall to 9 percent comes at a time when the August figure marked the eighth consecutive month of decline. According to the GSS, inflation dropped from 12.1 percent in July to 11.5 percent in August, the lowest rate recorded in nearly four years. This performance also means inflation has fallen below the government’s end-of-year target of 11.9 percent.

Prof. Baah-Boateng explained that Ghana’s inflation trajectory has been supported by both seasonal and structural factors. He highlighted the cedi’s appreciation between April and May as a major influence, saying that the impact of the stronger currency helped moderate price pressures in the months that followed.

He also pointed to the ongoing harvest season as another significant contributor to falling food prices, adding that favorable rainfall has ensured steady supplies, further reducing inflationary risks. “From the food side, we are continuing to harvest, and that is good for us,” he said.

Beyond these factors, the economist credited prudent fiscal management and restrained government spending for creating an environment of stability. He stressed that the Bank of Ghana’s cautious approach to monetary policy, particularly in limiting demand-side pressures, has reinforced the progress made so far.

READ: Inflation could drop to 9% by end of 2025 – Prof. Baah-Boateng

Looking ahead, Prof. Baah-Boateng maintained that Ghana’s inflation could fall to 9 percent by December 2025 if the exchange rate remains around GH₵12 to the dollar. “If the currency holds steady and expenditure is kept in check, then we should comfortably end the year with single-digit inflation,” he stated.