The Bank of Ghana has projected that inflation is likely to decline further and fall within the medium term target range of 6 to 10 percent during the third quarter of 2025, ahead of earlier expectations.

According to a statement released by the Chairman of the Monetary Policy Committee (MPC) and Governor of the Bank of Ghana, Dr Johnson Asiama, on July 30, 2025, macroeconomic conditions have significantly improved, inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning.

“The July forecast also shows that headline inflation is expected to decline further in the third quarter of 2025 and trend within the medium-term target of 8±2 percent by the end of 2025, earlier than initial projections,” the statement indicated.

It further explained that, the external sector outlook is positive, anchored on favourable commodity prices and improved remittance inflows, despite the resumption of external debt service.

Adding that, the cedi has further strengthened against major trading currencies on the back of the strong external sector performance and increased reserve accumulation.

Mr Asiamah further stated that in the year to 25th July, 2025, the cedi appreciated by 40.7 percent against the US dollar, 31.2 percent against the British pound, and 24.2 percent against the euro.

Meanwhile, the BoG cautioned that there are upside risks to the inflation outlook, which include potential supply chain challenges emanating from the global trade tensions, and upward adjustment in utility tariffs.

This notwithstanding, the central bank maintained that the impact of these risks on inflation are expected to be offset by appropriately tight monetary policy stance and continued fiscal consolidation.

The IMF projects a decrease in global inflation while predicting slower 2025 economic growth in the U.S. and other regions.

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