Economic and environmental policy analyst Michael Adofo Abuah warned the Ghanaian government that rising prices for essential goods and services could undermine the New Economy agenda set to be unveiled in the 2027 Budget. Speaking on JoyNews Desk on Tuesday, he urged Finance Minister Dr Cassiel Ato Forson to pay closer attention to the cost burdens facing ordinary Ghanaians ahead of the budget presentation on Thursday, November 12.
Abuah highlighted that persistent supply‑side shocks, especially in the energy and transport sectors, are pushing inflation higher. Data from the Ghana Statistical Service shows October inflation at 5.5 percent, the third consecutive monthly rise, while transport inflation surged to 14.1 percent from 5.7 percent in September. Inflation in housing, water, electricity, gas and other fuels stood at 10.5 percent.
He argued that these sectors require targeted interventions, noting that the International Monetary Fund’s Policy Coordination Instrument calls for measures to curb inflationary pressures in essential services. Abuah added that higher inflation in these categories remains above the overall headline rate, threatening the success of the New Economy agenda, which relies on lower business costs and improved household living conditions.
In addition, the analyst cautioned against aggressive policy rate hikes, suggesting that monetary policy should remain conservative to support investment and broader economic activity. He stressed that the budget’s focus on growth, investment and employment must also consider the affordability of essential services for citizens.
As Ghana prepares to roll out its 2027 Budget, Abuah’s remarks underscore the need for a balanced approach that tackles inflation while fostering job creation and strategic investment in export sectors.
