Governor of the Bank of Ghana, Dr. Johnson Asiama, has indicated that the upcoming 2025 budget will introduce measures aimed at addressing food inflation, a major contributor to overall inflation.
With rising food prices driving up household expenses and business costs, the central bank views targeted fiscal interventions as essential for stabilizing prices and ensuring macroeconomic stability.
Speaking on inflationary trends in an interview with Bloomberg, Dr. Asiama acknowledged that the latest inflation reading was higher than expected, primarily due to food price pressures. He emphasized that these pressures are structural and require policy action.
“Last reading came in a little higher but we think that going forward if you look at the causes of the inflationary pressures, it was mainly from food inflation. It was mainly structural in nature and so therefore the coming budget statement which is about to be presented should be presenting a number of measures that can contain food inflation. If that is done, I am sure we will see a return to the disinflation path,” he stated.
Dr. Asiama also revealed that the Bank of Ghana’s Monetary Policy Committee (MPC) will meet next month to reassess economic conditions and determine an appropriate policy response.
“We plan to hold the next monetary policy meeting next month where we will reassess the conditions and take an appropriate decision. Therefore once we have an appropriate monetary policy stance in place and then also food price inflation is well controlled, we will begin to see inflation trending back to its target path,” he added.
