Figures released yesterday by Ghana Statistical Service (GSS) indicates that the country's inflation rate has dropped from 11.66 per cent in April 2010 to 10.68 per cent in May, inching closer to the desired single digit sought by government.
"There are indications that our target for headline inflation specified as a single digit by the end of 2010 is within reach," said the Minister of Finance and Economic Planning, Dr. Kwabena Duffuor in a statement issued in Accra by the Ministry and copied to the Ghana News Agency.
The statement said the rate of inflation has consistently been falling since the beginning of the second half of last year.
It said the development is in response to the sound monetary and fiscal policies adopted at the beginning of 2009 to correct the deteriorations of 2008.
The statement said Dr. Duffuor advised that "as a country, we must never again, either by playing politics with inflation and interest rates, or taking risk with public figures or just thinking short term allow our hard won economic stability to be put at risk."
"For it is not by chance but by working together that we have inflation today at its lowest rate in more than two years but the bigger prize is to ensure that businesses can plan within an environment of lower inflation," the statement quoted Dr. Duffour as saying.
The statement said a contributory factor to the drop in inflation is the strength of the Cedi that has been experiencing an "unprecedented" level of stability in the last 12 months.
It said interest rates at both the money and capital markets have consistently fell and that the trend is expected to continue as government's fiscal consolidation measures continued to bear fruit.