Minister of Finance, Dr. Cassiel Ato Forson
A business strategist and financial analyst, Dr. Daniel Armateye Anim, has stated that the government’s inflation target of 11.9% for 2025 is ambitious but achievable.
He argued that achieving this goal will require significant effort, particularly in addressing cost-driven inflation in the domestic economy. Key factors contributing to rising inflation include high utility costs and exchange rate fluctuations, which directly impact manufacturing prices.
The Minister of Finance, Dr. Cassiel Ato Forson, announced on Tuesday, March 11, 2025, that the government has set an end-period inflation rate target of 11.9% for 2025.
This target is part of the government’s broader macroeconomic objectives aimed at stabilizing the economy and promoting sustainable growth.
Speaking to GhanaWeb Business, Dr. Daniel Anim said that considering the country’s current economic dynamics, a 15% target would be more realistic than 11.9%.
“The inflation rate or the target set by the Honourable Minister at 11.9% by the end of the fiscal year 2025 is quite ambitious. Looking at where we are now—around 23.8%—it’s achievable, but it is quite ambitious. What this means is that more work needs to be done because if you look at what is driving inflationary pressures within the domestic economy, it is cost-driven,” he said.
He added, “So the question is, how do you immediately reduce costs in terms of utilities, which feed into the price build-up at various manufacturing levels, and also the exchange rate regime? If these two critical indicators are well addressed, then it should be possible. However, I would prefer a 15% target rather than 11.9%, considering the economic dynamics and the nation’s ability to reduce inflationary pressures.”
SP/MA