Vice President Paa Kwesi Amissah-Arthur says he is hopeful inflation will continue to decline to the target level in the next one year.

Inflation rate for the month of June this year declined marginally from 18.9 % to18.4%.

Government statistician, Dr Philomena Nyarko attributed the drop to non-food inflation such as transport, education, housing, water, electricity and gas which dropped from 25% to 24.1%.

Amissah-Arthur said the IMF Extended Credit Facility has started showing a tremendous impact on the economy especially in the area of fiscal consolidation.

He re-echoed Seth Terkper's claim that the economy is back on track, saying the economy recorded a growth rate of four percent per annum as well as a reduction in the budget deficit.

In addition, the vice president said a combination of falling commodity prices on the international market and Ghana's power challenges have created difficulties in the country's services and manufacturing sector.

"Such conditions, combined with the problems in our power sector, have created difficulties for our services and manufacturing sectors," Amissah-Arthur said.