Mid-year budget review: Inflation plummets by 31% since 2022 – Amin Adam

Finance Minister Dr. Mohammed Amin Adam, says inflation, a key concern for many Ghanaians, has seen a notable decline.

He indicated that the economy was showing promising signs of recovery as inflation had decreased by 31% since 2022.

Ghana’s inflation rose to 54.1% in December 2022, up from 50.3% the previous month and its highest level in 22 years, driven by fuel, utilities and food.

The Ghana cedi slumped last year, fuelling inflation, as government spending cuts and central bank interest rate hikes failed to tame price rises.

Prices rose the most in the category of housing, water, electricity, gas and other fuels, up 82.34% year-on-year.

Dr. Adam said the improvement in inflation rates, coupled with a stabilisation of the exchange rate, is expected to ease the cost of living for citizens.

Dr. Adam also highlighted the government’s significant investments in social programmes and infrastructure.

Addressing Parliament, he stated key achievements and outlined the government’s plans for the remainder of the year in the 2024 mid-year budget review.

Dr. Amin Adam acknowledged global economic challenges but expressed confidence in Ghana’s economic trajectory.

The minister attributed this achievement to effective fiscal management and strategic negotiations with international partners.

Ghana has had successful negotiations with the International Monetary Fund (IMF) which have resulted in crucial support, including a $600 million tranche from the IMF and a $2.8 billion debt relief from the Paris Club and other creditors.