Investment advisory firm Merban Capital says Ghana’s inflation decline to 8 percent in October — the lowest in four years is a strong indication that macroeconomic stability is returning and investor sentiment is beginning to rebound.
Head of Finance, Nelson Cudjoe Kuagbedzi, described the drop as a milestone that confirms the country’s steady recovery path. He noted that the latest figure aligns with Merban Capital’s earlier projections that inflation would return to single digits before the end of the year.
Speaking to Citi Business News, Mr. Kuagbedzi said the disinflation trend has been driven by a mix of prudent fiscal consolidation, a tight monetary stance by the Bank of Ghana, improved exchange rate stability, declining fuel prices, and increased food supply.
“We projected inflation to hit single digits this year because the underlying disinflationary triggers were already in place. Prudent fiscal management, a firm monetary posture by the central bank, relative currency stability, reduced fuel prices and excess food supply have all contributed to easing price pressures.”
He added that the return to single-digit inflation strengthens Ghana’s near-term economic outlook and positions the country for renewed investor inflows.
“The 8 percent inflation clearly shows the economy is on the path of recovery and growth. We expect investor confidence to bounce back,” he noted.
Mr. Kuagbedzi also expressed optimism that inflation will remain within the Bank of Ghana’s medium-term target band of 8 percent, plus or minus two percentage points, by year-end; a development that could further reinforce stability across financial markets.
