Ghana to attain single-digit inflation 2nd quarter 2026 – BoG

Ghana is projected to attain a single-digit inflation by the second quarter of next year, the Governor of Bank of Ghana (BoG), Dr Ernest Addison, has stated.
He said the feat would have been achieved by the first quarter of next year but given the macroeconomic challenges the country is going through, economic analyst had shifted their projection to second quarter of next year.
Speaking at the 122nd Monetary Policy Committee press conference in Accra on Monday after the regular meeting of the MPC, the Chairman noted that the single-digit inflation target would be achieved on the fiscal consolidation being pursued by the government.
The MPC at its latest meeting, maintained the policy rate (the rate at which the Central Bank lends to commercial banks which invariable influences interest rate) for three consecutive times at 27 per cent, citing improved macroeconomic conditions and positive growth of the economy.
Dr Addison posited that the economic development agenda and direction of the current government would help in achieving the single-digit inflation.
Inflation which stood around 23 per cent in the beginning of 2024 ended the year at 23.8 per cent driven by food prices pressures.
Dr Addison, who is the Chairman of MPC, stated that the BoG could not achieve its inflation target due to the challenges with food prices, and supply side problems.
“The inflation profile remained unabated, largely driven by a food price movement, especially in the vast coastal areas,” the Governor indicated.
Additionally, Dr Addison said the climate-related factors, including the dry spell of some parts of the food-growing regions of the country, and the late onset of rains negatively affect food production, while supply chain weaknesses generally affect food prices.
“While the inflation outcome for the year 2024 deviated from target, it is expected that the inflation process will resume, contingent on the new efforts at fiscal consolidation, which is anticipated in the new administration’s economic policy agenda and the yet-to-be-presented 2025 budget statement,” the Governor stated.
Moreover, Dr Addison mentioned that the Bank’s latest inflation forecast showed a steady impact and return to the path of its inflation, with an extended time horizon of achieving the medium-term target of 8 plus or minus two per cent.
He said structural challenges confronting the country had been a driver the country could not achieve a single-digit inflation last year.
BY KINGSLEY ASARE