Inflation Likely to Remain Stable Despite Fitch Projection
By: Solomon Nartey Tetteh
Economic Analyst Emmanuel Boateng has expressed confidence that Ghana’s inflation will remain relatively stable in the medium term, contrary to projection by Fitch Solutions that inflation could run slightly hotter, though still modest, in the second half of 2026.
Speaking on Business Breakfast on Zed 101.9FM, Mr. Boateng said he does not expect inflationary pressures to intensify, stressing that recent trends point to sustained moderation rather than overheating.
“I really don’t expect inflation to be hotter. The steady decline recorded this year was largely due to base effects, as current prices were being compared with exceptionally high levels in the previous year,” he stated.
According to him, the high inflation recorded last year created a favourable comparison effect, where even small price increases translated into lower inflation rates. This, he said, accounted for the consistent downward trend in inflation throughout the year.
Mr. Boateng explained that inflation comparisons will be made against lower figures recorded in late 2025, such as 6.3 percent, 8 percent and 9.4 percent, which could alter the pattern of reported inflation rates.
The analyst stressed that households are unlikely to face significant pressure, as inflation is expected to remain generally stable, supported by improved supply conditions and sustained inflows of goods.
He further pointed out that imported inflation does not constitute the largest component of Ghana’s inflation basket and therefore does not contribute significantly to overall price movements.
Mr. Boateng highlighted that, taken together, favourable base effects, currency stability and controlled imported inflation should help keep inflation within manageable levels, even as Ghana navigates economic adjustments in the coming years.
The Analyst also cautioned that while targeted fiscal and monetary interventions can help stabilise Ghana’s currency, such measures are not sustainable in the long term unless they are supported by real economic growth.
Mr. Boateng said the recent expectations of currency stabilisation are linked to the injection of targeted fiscal stimulus into an economy with slack capacity. He said such interventions, including the injection of dollars into the economy, are designed to shore up the cedi and calm market pressures.
