Member of Parliament for Ofoase-Ayirebi, Kojo Oppong Nkrumah, has cautioned that Ghana’s recent drop in inflation may only be temporary if deeper economic challenges are not addressed. According to him, the decline in inflation figures should not automatically be interpreted as a sign of lasting economic stability.
His remarks come after new data from the Ghana Statistical Service indicated that inflation had dropped significantly, reaching about 3.3 percent in February 2026, one of the lowest levels recorded in recent years. While the development has been welcomed by many observers, Oppong Nkrumah believes the improvement could prove fragile if structural issues affecting businesses remain unresolved.
According to the lawmaker, the recent reduction in inflation appears to be driven largely by tight monetary policies implemented by the Bank of Ghana. These measures involve controlling the amount of money circulating in the economy, which has reduced consumer spending power. As a result, demand for goods and services has slowed, leading to slower price increases.
Oppong Nkrumah explained that many products remain unsold in the market because consumers currently have limited purchasing power. In his view, the slowdown in spending has helped reduce inflation, but it does not necessarily mean that the underlying problems in the economy have been solved.
He also pointed to rising production costs as a major concern for businesses. Factors such as high electricity tariffs, transportation costs, and the increasing price of raw materials continue to place pressure on producers. Some businesses, he noted, have already experienced electricity bill increases ranging between 24 and 28 percent, which could eventually lead to higher prices for consumers.
The former Information Minister warned that if these cost pressures are not addressed through structural reforms, inflation could rise again once monetary restrictions are relaxed.
He therefore urged policymakers to focus not only on controlling money supply but also on reducing production costs and strengthening economic productivity to ensure that the current gains in inflation remain sustainable.
