The Centre for Economic Research and Policy Analysis (CERPA) has called on policymakers to back Ghana’s recent success in reducing inflation with strong structural reforms to ensure long-term economic stability.
In a policy brief titled “Beyond Headline Inflation: Emerging Structural Risks in Ghana’s Inflation Trends,” the think tank recommended major investments in transport systems, supply chains, housing, agriculture, and regional development to address underlying economic weaknesses.
CERPA noted that Ghana’s inflation rate has fallen significantly from 23.8 percent in December 2024 to 3.2 percent in March 2026, before slightly rising to 3.4 percent in April. However, it warned that this improvement masks deeper structural challenges that continue to affect prices in everyday goods and services.
The organisation cautioned policymakers against relying only on headline inflation figures, stressing that many households still experience rising living costs, particularly in food, services, and imported goods.
It advised the Bank of Ghana to continue a cautious approach to monetary easing while strengthening exchange rate stability and expanding inflation tracking to include broader indicators such as regional and sectoral trends.
CERPA also urged government to invest in infrastructure such as irrigation systems, storage facilities, and transport networks to reduce supply bottlenecks and lower distribution costs.
It further called for reforms in agriculture to reduce post-harvest losses and stabilize food prices, alongside expanded affordable housing programmes and rent policy reforms to ease household cost pressures.
The think tank also recommended stronger fiscal discipline to avoid excessive spending and subsidies that could reverse inflation gains, as well as targeted development strategies to reduce regional inequality, especially in northern Ghana.
Additionally, it emphasized the need to boost industrialisation and reduce dependence on imports in order to shield the economy from external shocks.
Despite the positive inflation figures, CERPA highlighted worrying trends, including a rise in services inflation from 7.2 percent to 9.6 percent and a shift in imported inflation from deflation to a slight increase.
It also pointed to regional disparities, with the Savannah Region recording deflation while the North East Region experienced relatively high inflation, showing uneven economic conditions across the country.
CERPA concluded that while Ghana’s achievement of single-digit inflation is a major milestone, sustaining it will require coordinated reforms focused on productivity, supply chain efficiency, and inclusive development.
Source: citinews
