The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, says the country’s prolonged period of disinflation has come to an end, with the Monetary Policy Committee (MPC) now assessing whether the recent rise in inflation is temporary or signals a more persistent shift in the inflation outlook.
Speaking at the opening of the 131st MPC meeting in Accra, Dr. Asiama said headline inflation has risen for three consecutive months, increasing from 3.2 percent in March to 5.3 percent in June, largely driven by higher transport and haulage costs.
Despite the increase, he noted that inflation remains below the Bank of Ghana’s target band of 8 percent, plus or minus two percentage points, and well below the 13.7 percent recorded during the same period last year.
“Headline inflation has risen for three consecutive months from 3.2 percent in March to 5.3 percent in June, driven largely by transport and haulage prices.”
Dr. Asiama said the committee’s key task this week is to determine whether the recent increase in inflation represents a normal return towards the central bank’s target range or the start of a more sustained inflationary trend.
“The prolonged disinflation phase has ended indeed, and inflation is now returning towards the target band. Whether that return reflects orderly normalisation or the beginning of a more persistent change in the outlook is a central question for our meeting this week.”
He added that the MPC would also assess the impact of external commodity price pressures, as well as potential increases in utility tariffs and transport fares, on the country’s inflation outlook.
“The central judgement in this is not whether inflation has moved but whether it is beginning to influence the expectations that shape price behaviour.”
The Monetary Policy Committee is expected to announce its latest interest rate decision at the conclusion of its meetings later this week, with markets closely watching whether policymakers maintain the current policy stance or signal a shift in response to evolving inflationary pressures.
