With food prices surging and driving up overall inflation, the Bank of Ghana is signaling a policy shift ahead of the 2025 budget. Governor Dr. Johnson Asiama has indicated that the upcoming budget will introduce targeted measures to tackle food inflation, which has emerged as a major economic challenge.
In an interview with Bloomberg, Dr. Asiama acknowledged that the latest inflation figures were higher than expected, largely due to persistent food price increases. He stressed that the problem is structural and requires direct policy intervention.
“The 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 structural in nature, and therefore, the coming budget statement should present a number of measures to contain food inflation. If that is done, I am sure we will see a return to the disinflation path,” he stated.
The rising cost of food has had a ripple effect, impacting both household budgets and business operations. The central bank believes that controlling food inflation is crucial to achieving macroeconomic stability and maintaining confidence in the economy.
Beyond fiscal interventions, the Bank of Ghana is also preparing to reassess its monetary policy stance. Dr. Asiama revealed that the Monetary Policy Committee (MPC) will meet next month to review economic conditions and determine an appropriate response.
“We plan to hold the next monetary policy meeting next month, where we will reassess the conditions and take an appropriate decision. Once we have a well-calibrated monetary policy stance and food price inflation is brought under control, we will begin to see inflation trending back to its target path,” he added.
As Ghana navigates economic uncertainties, the government’s ability to curb food inflation will be a key determinant of inflation stability in the coming months. The 2025 budget, expected to outline concrete interventions, will be closely watched by businesses, consumers, and policymakers alike.
