The Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey has expressed doubts about Ghana’s ability to meet its 11 per cent inflation target.
He described the target as overly ambitious, considering the country’s current economic challenges.
Speaking at the ISSER 2025 budget review in Accra, Prof. Quartey said there was a clear disconnect between government fiscal policies and economic realities, particularly given the persistently high inflation rate.
Ghana’s current inflation rate stands at 23 per cent, down from 55 per cent in 2021, but still far above the 11.9 per cent target for 2025.
Prof. Quartey identified fiscal indiscipline, external shocks, and structural inefficiencies as key barriers to achieving the inflation target.
“The budget acknowledges the problem of inflation and proposes measures to stabilise it, but the question is whether the target is achievable?
“An inflation rate of 11.9 per cent by 2025 is an uphill task. We need both fiscal and monetary authorities to coordinate effectively to bring inflation down, but the current trajectory suggests otherwise,” he said.
Prof. Quartey noted that the government’s agricultural transformation policies aimed at stabilising prices of key commodities in the Consumer Price Index (CPI) basket might not be sufficient to tackle the root causes of inflation.
“We need a more comprehensive approach that includes prudent fiscal management and confidence-building measures to ensure that inflation expectations are well-anchored,” he advised.
Prof. Quartey said that Ghana’s inflation rate was exceptionally high compared to other African countries.
He noted that during a recent interaction with international partners, the mention of Ghana’s 23 per cent inflation rate was met with surprise and disbelief.
