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The Governor of the Bank of Ghana, Dr. Johnson Asiama, has indicated that the 2025 national budget will introduce measures aimed at addressing food inflation, a key driver of overall inflation.
With food prices significantly impacting household expenses and business costs, the central bank sees targeted fiscal policies as crucial for stabilizing prices and maintaining macroeconomic stability.
In an interview with Bloomberg, Dr. Asiama acknowledged that the latest inflation figures were higher than anticipated, largely due to rising food costs. He stressed that these pressures are structural and require deliberate 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 disclosed that the Bank of Ghana’s Monetary Policy Committee (MPC) is scheduled to meet next month to reassess economic conditions and decide on 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.
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