Mahama vows to keep inflation in single digits after sharp decline

President John Mahama has reaffirmed his government’s commitment to maintaining inflation within single-digit levels, following a significant decline in the rate to 3.2 per cent. The President emphasized that this milestone is part of a broader economic strategy aimed at stabilising the country through disciplined fiscal management, responsible spending, and prudent financial policies designed to restore confidence in Ghana’s economy.

Speaking during a citizen engagement session at the University of Development Studies on Sunday, April 19, President Mahama highlighted the progress made since his administration assumed office. He noted that inflation, which previously stood at over 24 per cent, has now dropped to below 4 per cent—marking a substantial improvement in macroeconomic stability and cost-of-living pressures for citizens.

He explained that the sharp decline in inflation did not happen by chance but was the result of deliberate policy choices. These include strict control over government expenditure, efforts to reduce budget deficits, and a conscious move to limit excessive borrowing. According to the President, these measures have been particularly important at a time when Ghana continues to face restricted access to international capital markets due to ongoing debt challenges.

President Mahama further stated that his administration has taken targeted steps to manage petroleum prices in a way that protects consumers from sudden increases that could trigger inflationary pressures. By cushioning citizens against fuel price shocks, the government aims to prevent a reversal of the gains made in stabilising prices.

“We’ve been able to manage the petroleum prices so that we cushion our citizens and prevent inflation from going back up to the levels that we came to meet it,” he said.

“When we came into office, inflation was running above 24%; it has been brought down to under 4%, and we intend to keep it there. We have done this by just being fiscally disciplined,” he added, underscoring the administration’s ongoing commitment to sustaining economic stability and protecting household purchasing power.