Strategic Measures Key to Sustaining Ghana’s Inflation Gains – Economist
By Praisebell Rosemond Larbi
A Development Economist, Felix Larry Essilfie, has urged policymakers to adopt strategic measures to sustain Ghana’s recent disinflation gains, expressing confidence that the country can achieve the projected 9.9 percent average inflation rate forecast for 2026.
The projection was recently made by the African Export-Import Bank (Afreximbank), which indicated that Ghana’s inflation is expected to moderate significantly in 2026 as macroeconomic conditions stabilise.
Speaking to The New Finder, Dr. Essilfie said Ghana has the capacity to meet the forecast, provided authorities maintain prudent monetary and fiscal policies. According to him, while growing demand for goods and services, particularly as economic activity strengthens, could exert upward pressure on prices, inflation can be contained through disciplined liquidity management.
“When money supply increases without a corresponding increase in production, inflationary pressures are inevitable. However, if liquidity in the system is strategically channelled into productive sectors such as manufacturing, agriculture, and value addition, rather than consumption, especially imports, it can stabilise prices and support sustainable growth,” he explained.
Dr. Essilfie emphasised that managing the direction of spending is as important as controlling the volume of money in circulation. He noted that excessive import-driven consumption places pressure on the exchange rate, which in turn fuels imported inflation. By contrast, investing in domestic production reduces foreign exchange demand and strengthens the supply side of the economy.
He also acknowledged ongoing global market uncertainties, including geopolitical tensions and commodity price volatility, which could pose risks to Ghana’s inflation outlook. Nonetheless, he expressed optimism that the country’s ongoing fiscal consolidation programme and macroeconomic reforms would enhance economic resilience.
“The progress made so far in stabilising inflation must not be reversed. We need to sustain fiscal discipline, improve revenue mobilisation, and ensure that public spending is targeted at growth-enhancing sectors,” he cautioned.
Dr. Essilfie further encouraged government to continue implementing long-term strategic initiatives such as the “Big Push” infrastructure programme, which he believes can stimulate productivity, reduce structural bottlenecks, and anchor long-term price stability.
He argued that investments in roads, energy, and industrial infrastructure would not only create jobs but also reduce production costs for businesses, ultimately easing price pressures over time.
Ghana’s inflation trajectory has improved in recent months, reflecting tighter monetary policy, exchange rate stability, and improved fiscal management. Analysts say maintaining these gains will require coordinated policy action, particularly as the economy gradually expands.
Dr. Essilfie concluded that with disciplined liquidity management, sustained reforms, and strategic investment in productive sectors, Ghana stands a strong chance of meeting Afreximbank’s 2026 inflation projection while reinforcing macroeconomic stability.
