While headline inflation has been on a steady decline in Ghana, professional services firm PwC says there is growing evidence that households and businesses are beginning to feel relief though questions persist on whether this easing is fully translating into lower prices for consumers.
In its independent analysis of Ghana’s 2025 Mid-Year Budget Review, PwC commended government and monetary authorities for what it described as “fiscal restraint and strong coordination,” which has contributed to macroeconomic stabilisation in the first half of the year.
Notable gains include a primary budget surplus, a more stable cedi, and reduced inflation, all of which have boosted private sector credit growth by 31.3% as of June 2025.
“There is a general view that businesses and households are already feeling relief from lower inflation. Some retail stores announced price reductions, but many traders in the informal markets remain adamant about dropping prices,” The firm stated in its report.
While macro-level indicators suggest improvement, the lived reality of many consumers appears less rosy. Despite headline inflation falling to 13.7% in June (the lowest level since 2021), market sentiment indicates a slower pace of price adjustments, especially in informal trading zones, where inflationary psychology and mark-up traditions remain entrenched.
PwC acknowledged the gap: “Discipline and timely execution are particularly important because risks remain particularly from persistent global economic uncertainties, trade and geopolitical tensions, as well as volatile commodity markets,” it cautioned.
Sustaining Progress Requires Deep Reform
PwC emphasised that Ghana’s macroeconomic gains, while commendable, are still fragile and will require deliberate follow-through to become durable.
“We summarise the strategy used to achieve these results as follows; fiscal restraint and strong coordination with monetary authorities. Still, it is our view that sustaining the progress posted so far would require careful sequencing of reforms, effective stakeholder coordination, and efficient programme delivery,” the firm said.
It also called for enhanced transparency, stronger oversight, and prompt execution of economic policy, stressing that “clarity around policy interventions particularly in tax policy, digitalisation, and industrial incentives are key to unlocking and sustaining business confidence.”
“For policymakers, particularly the Minister for Finance we advise that continued adherence to fiscal discipline and the rigorous implementation of Act 921 are paramount,” it said.
As the economy enters the second half of 2025, the challenge for the government may no longer be about stabilising the macroeconomy, but rather ensuring that the benefits of that stability are felt tangibly across households, markets, and businesses alike.
