Ghana’s disinflationary run has delivered its biggest milestone yet, with consumer price inflation easing to 9.4 percent in September 2025 — the first single-digit reading in four years.
The announcement by the Ghana Statistical Service has been greeted with optimism, as it suggests that years of painful price pressures may finally be giving way to stability.
Yet, even as the country celebrates this achievement, leading economist Professor Peter Quartey is sounding a note of caution.
The Professor of Economics at the Institute of Statistical, Social and Economic Research (ISSER) argues that pushing inflation down aggressively beyond this level could stifle growth and undermine government spending, which remains critical to livelihoods and infrastructure delivery.
“Some level of inflation is good, I mean, when the government is spending, when the government is constructing roads, it puts money in people’s pockets. But if you fight inflation so hard, you will be hurting spending and the economy as well,” Prof. Quartey told Citi Business News.
He explained that the goal should not simply be to drive inflation lower at all costs, but to maintain it at levels that balance price stability with economic expansion.
“We need an optimal rate of inflation and it has been estimated that anything between 10 to 15 percent for a developing country like ours is acceptable. At the moment it is 9.4 percent so it is fine, it is not as bad. But if we try to drive it further down it is going to hurt the economy and it means that government is not spending and that can affect people’s lives significantly,” he added.
The caution comes at a time when policymakers are under pressure to consolidate the disinflationary gains. With food inflation slowing to 11 percent in September and non-food inflation at 8.2 percent, expectations are rising that interest rates could ease further, creating space for businesses and households to access cheaper credit.
But Prof. Quartey’s caution serves as a reminder that the fight against inflation carries trade-offs. Over-tightening monetary and fiscal policy to chase lower rates, he warns, could weaken demand, limit public investment, and slow job creation.