Government Statistician, Dr. Alhassan Iddrisu, has underscored the need for strong fiscal and monetary consolidation measures to maintain the steady decline in inflation Ghana has experienced over the past six months.
Speaking at a press briefing on the release of the June Consumer Price Index (CPI), Dr. Iddrisu emphasized that while recent stability in prices is encouraging, sustaining the downward inflation trend requires deliberate government action on multiple fronts.
He noted that inflation remains heavily influenced by both domestic policies and external factors, particularly the exchange rate.
“The management of the exchange rate is extremely critical in ensuring price stability,” Dr. Iddrisu stated, adding that any significant depreciation of the cedi could fuel both imported and domestic inflation, especially for goods heavily reliant on imports.
He stressed the importance of the Gold for Reserves program, noting that efforts by the Gold Board to boost foreign exchange reserves are essential in stabilizing the local currency and, by extension, controlling inflation.
Beyond exchange rate management, Dr. Iddrisu called on the Ministry of Finance to stay committed to the ongoing fiscal consolidation agenda, particularly under the framework of the IMF support program, to curb excessive government spending and reduce the fiscal deficit.
He further advocated for the effective rollout of growth-driven initiatives such as the 24-hour economy policy and the Big Push infrastructure program, highlighting their potential to stimulate economic growth while creating jobs and bridging infrastructure gaps.
According to Dr. Iddrisu, a combination of sound monetary policies, disciplined fiscal management, and aggressive growth interventions is necessary to keep inflation on a downward path and protect Ghana’s economic stability.
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Source: Comfort Sweety Hayford/ATLFMNEWS.COM
