By Prince Antwi
Copyright ghanaguardian
Ghana’s disinflationary drive has reached a major milestone, with consumer price inflation falling to 9.4% in September 2025 — the country’s first single-digit reading in four years. The announcement by the Ghana Statistical Service (GSS) has been met with optimism, signaling a possible end to years of intense price pressures.
However, while the development has been widely celebrated, leading economist Professor Peter Quartey of the Institute of Statistical, Social and Economic Research (ISSER) has cautioned against pushing inflation down too aggressively. He argues that overly tight policies could suppress economic growth and limit vital government spending on infrastructure and social services.
“Some level of inflation is good. When the government is spending and constructing roads, it puts money in people’s pockets. But if you fight inflation too hard, you end up hurting spending and the economy as well,” Prof. Quartey told Citi Business News.
He stressed that the goal should not simply be to achieve the lowest possible inflation rate, but rather to maintain a balance between price stability and economic expansion. “We need an optimal rate of inflation, and estimates suggest that anything between 10% and 15% is acceptable for a developing country like ours. At 9.4%, we are fine. But driving it further down could constrain government spending and significantly affect people’s lives,” he explained.
The warning comes as policymakers weigh their next steps in consolidating the disinflation gains. With food inflation slowing to 11% and non-food inflation dropping to 8.2%, expectations are rising that interest rates may be cut further, potentially easing access to credit for businesses and households.
Yet, Prof. Quartey’s caution serves as a reminder that the fight against inflation carries trade-offs. Over-tightening fiscal and monetary policy, he warns, could weaken demand, reduce public investment, and slow job creation, undermining the very stability Ghana is striving to secure.