Ghana’s Return to 8% Inflation Marks Stronger Economic Stability – PwC, Merban Capital
By Praisebell Rosemond Larbi
Ghana’s return to an 8 percent inflation rate, the lowest in four years, has been hailed by PwC Ghana and Merban Capital as a major sign of renewed macroeconomic stability, fiscal discipline, and investor confidence.
According to Vish Ashiagbor, Country Senior Partner at PwC Ghana, the achievement represents a “clear indication that Ghana’s macroeconomic framework is strengthening,” and sets the stage for sustained price stability if the current policy direction is maintained.
Speaking at the 2025 PwC Cyber Forum in Accra, Mr. Ashiagbor said the disinflation trend reflects improved coordination between fiscal and monetary authorities and growing optimism among businesses and investors.
“The fact that inflation has fallen to 8 percent reflects a stronger macroeconomic framework. If we sustain this momentum and build private sector confidence, we could see a more stable price environment,” he said.
He stressed that fiscal discipline, policy consistency, and active engagement with the private sector will be essential to consolidate the gains and anchor expectations in the coming months.
Investment advisory firm Merban Capital also applauded the development, describing it as “evidence that macroeconomic stability is returning.”
Nelson Cudjoe Kuagbedzi, Head of Finance at Merban Capital, called the drop “a milestone that confirms the country’s steady recovery path,” noting that the outcome aligns with the firm’s earlier projection that Ghana would return to single-digit inflation before the end of 2025.
“We projected inflation to hit single digits this year because the underlying disinflationary triggers were already in place. Prudent fiscal management, a firm monetary posture by the Bank of Ghana, relative currency stability, reduced fuel prices, and excess food supply have all contributed to easing price pressures,” Mr. Kuagbedzi said.
Economists attribute Ghana’s inflation success to coordinated fiscal and monetary policies, supported by a tight monetary stance from the Bank of Ghana, improved public expenditure control, and revenue mobilization.
The cedi’s recent appreciation, declining global oil prices, and increased domestic food production have further strengthened the price environment. Analysts also note that policy credibility and institutional cooperation are helping restore market confidence.
Mr. Ashiagbor added that this period of stability presents an opportunity to deepen structural reforms and boost private sector growth.
“We must use this period of relative stability to support industrial growth and make the business environment more predictable,” he advised.
However, both PwC Ghana and Merban Capital cautioned that Ghana remains vulnerable to external shocks, including volatile commodity prices, global interest rate shifts, and climate-related disruptions that may impact agriculture.
Mr. Kuagbedzi emphasized that maintaining low inflation will require continued vigilance, fiscal prudence, and a proactive monetary stance.
“Inflation management is not a one-time event. Sustaining this momentum will require consistent discipline and foresight,” he said.
Both firms concluded that if Ghana sustains its current reform trajectory, it could achieve lasting low inflation, stronger investor confidence, and accelerated economic growth heading into 2026.
