Fitch Forecasts Ghana’s Inflation to Drop to 18.8% in 2025 — Signs of Economic Relief Ahead

/ Lower oil prices, improved food supply, and stronger cedi expected to ease pressure on consumers

Ghana’s inflation outlook is set to improve significantly next year, according to a new report from UK-based research firm Fitch Solutions. The firm projects that average inflation will fall from 22.9% in 2024 to 18.8% in 2025, driven by declining global oil prices, enhanced food supply, and a stronger local currency.

Fitch projects a fall in Ghana’s inflation to 18.8% by 2025, signaling hopeful signs of
recovery and stability.

📉 What’s Behind the Projected Inflation Drop?

In its latest analysis, Fitch Solutions pointed to several key drivers for the anticipated decline:

👉 Easing global oil prices, which will allow Ghana’s National Petroleum Authority (NPA) to stabilize or reduce fuel prices, relieving pressure on household budgets.

👉 Improved agricultural imports, including wheat and rice, helping reduce food inflation.

👉 Rising gold prices, boosting Bank of Ghana’s reserves and supporting a more stable cedi, which in turn reduces imported inflation.

"Household consumption will remain the driving force behind economic growth in the coming quarters as inflationary pressures ease," the report stated.

💡 Economic Impacts

The improved inflation outlook is expected to enhance consumer confidence and stimulate domestic demand:

👉 Private consumption is projected to grow by 4.0% in 2025.

👉 This will contribute 3.2 percentage points to Ghana’s overall economic growth next year.

👉 Fitch expects a further drop in inflation to 15.2% by 2026, which would strengthen consumer purchasing power.

REAL ALSO: Mahama Defends Cedi Gains: “It’s Effective Leadership, Not Just Policy” — Mahama Fires Back at Dr. Bawumia

🏦 Role of IMF Program

Fitch also noted that Ghana’s $3 billion Extended Credit Facility (ECF) with the IMF, set to conclude in May 2026, has played a key role in macroeconomic stabilization.

The program includes structural reforms and fiscal consolidation strategies that have helped anchor inflation expectations and restore investor confidence in the economy.

📊 Outlook Summary

Year	Projected Inflation	Private Consumption Growth
2024	22.9%	-
2025	18.8%	4.0%
2026	15.2%	↑ Continued rise expected

💸 More spending power for Ghanaians
📉 15.2% inflation forecast by 2026

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