Minister of Finance Dr. Cassiel Ato Forson has outlined the government’s plan to combat inflation, focusing on four key measures aimed at stabilizing prices and easing economic pressure on Ghanaians.
Speaking at Parliament House during the presentation of the 2025 Budget, Dr. Ato Forson emphasized that the government is committed to tackling inflation through targeted interventions in agriculture, transportation, fiscal policy, and exchange rate stability.
Boosting Food Production to Lower Inflation
Forson highlighted the Agriculture for Economic Transformation Agenda, a government initiative aimed at increasing food production to drive down food prices.
“We expect this initiative to reduce food inflation, which is a major contributor to overall inflation,” he stated. By investing in local agriculture and ensuring food security, the government aims to reduce dependence on imports and stabilize food costs.
Targeting Key CPI Basket Items
Recognizing the impact of rising transportation and utility costs on inflation, the Minister announced policies to directly lower the prices of these essential services.
“The government will implement policies that target items with large weights in the CPI basket, such as transportation and utility costs,” he explained.
These measures are expected to ease the cost of living for citizens and businesses alike.
Aggressive Fiscal Consolidation to Reduce Inflationary Pressures
Dr. Ato Forson also stressed the importance of fiscal discipline in fighting inflation.
“Our aggressive fiscal consolidation drive, aimed at reducing the fiscal deficit and borrowing, will contribute significantly to reducing inflationary pressures,” he stated.
By cutting excessive government spending and borrowing, the administration aims to prevent excessive money supply, which fuels inflation.
Exchange Rate Stability to Curb Imported Inflation
To address imported inflation and rising fuel prices, Forson reiterated the government’s strategy to stabilize the exchange rate.
“Improving exchange rate stability will reduce imported inflation and fuel costs,” he noted.
A stronger and more stable cedi will help control the cost of imported goods, further easing inflationary trends.
Monetary Policy Support from Bank of Ghana
In addition to fiscal measures, Forson assured that the Bank of Ghana will maintain an appropriate monetary policy stance to complement government efforts. “The central bank will use its liquidity management interventions to support this inflation process,” he added. By carefully regulating money supply and interest rates, the central bank aims to keep inflation in check while supporting economic growth.
Source: TheDotNews