Economists are optimistic Ghana will record a single digit inflation by 2018.
They explain that the key indicators such as declining inflation, the stable currency regime and other fiscal conditions could help attain single digit inflation in the near future.
Speaking to Accra-based Citi FM the Managing Director and Head of Quantum Global Research Lab, Professor Mthuli Ncube said the economic outlook of the country has positive prospects of achieving a single digit inflation.
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“One of the drivers of inflation in the first place is public expenditure; in terms of the deficit, that is coming under control and that is positive. It also shows signs of a steady cedi too. I will say that the physical conditions count but also the exchange rate conditions is part and will stabilise inflation and push it down.”
Meanwhile, the Bank of Ghana (BoG) is also optimistic of recording a single digit inflation of 8 percent plus or minus 2.
This is despite the fact that BoG has missed the timeline for this target a couple of times. The Central Bank is hopeful of achieving the target by the third quarter of 2018.
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According to the Ghana Statistical Service inflation has been dropping since October 2016.
As at the end of 2016, Ghana’s inflation reached 15.4 percent.
In January 2017, the inflation dropped further to 13.3 and it is currently at 12.1 percent in June 2017.