Government may not achieve its inflation target of 11.9% – Prof. Quartey

Economist, Professor Peter Quartey has said government may not meet its inflation target of 11.9 percent by the end of this year.

Finance Minister Dr. Cassiel Ato Forson announced in the 2025 Budget that government is expecting to end the year with an inflation of 11.9 percent.

However, Professor Quartey said the target is unlikely to be achieved, citing ongoing challenges in key sectors of the economy.

He specifically pointed out that the government has made little progress in addressing the persistent rise in food inflation, which continues to drive the overall inflation rate upward.

“I think we may miss the target, but only by a small margin. I don’t believe we’ll hit it. When we look at the sectorial projections, agriculture is unlikely to show significant growth, and food inflation has been a major issue. Unfortunately, not much has been done to address this,” Professor Quartey stated.

He emphasized that the government should adopt a long-term strategy to achieve such targets, advocating for a more comprehensive approach to economic stabilization.

“We need a long-term target because the current target for this year is overambitious. There is a need to address all the bottlenecks in the economy to ensure strong macroeconomic indicators that can drive sustainable growth,” he added.

The government of Ghana’s inflation target for 2025 was set at 11.9 percent as part of a broader effort to stabilize the economy after a challenging period of high inflation and fiscal deficits.

Despite ongoing efforts to bring inflation under control, challenges in critical sectors such as agriculture, energy, and food production continue to pose significant obstacles to meeting the goal.

Government is expected to prioritize food inflation, which remains one of the primary drivers of overall inflation, in order to avoid further economic strain on households and businesses.