Ghana’s disinflation phase has ended as MPC reviews inflation risks – BoG Governor

Bank of Ghana (BoG) Governor Dr Johnson Asiama has indicated that Ghana’s extended period of slowing inflation has come to an end, with the Monetary Policy Committee (MPC) now focused on determining whether the recent rise in prices is temporary or the start of a more sustained inflationary trend.

Speaking at the opening of the MPC’s 131st meeting in Accra, Dr Asiama said headline inflation has increased for three consecutive months, climbing from 3.2 per cent in March to 5.3 per cent in June, largely due to rising transport and haulage costs.

He, however, pointed out that inflation remains comfortably within the Bank of Ghana’s medium-term target range of 8 per cent, plus or minus two percentage points, and is significantly lower than the 13.7 per cent recorded in June 2025.

“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,” he said.

According to the Governor, a key priority for the Committee during the meeting is to establish whether the recent upward movement in inflation reflects a gradual return to normal levels or signals the beginning of prolonged price pressures.

“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,” Dr Asiama stated.

He added that policymakers would also examine the potential impact of higher global commodity prices, as well as possible adjustments in utility tariffs and transport fares, on future inflation.

“The central judgement in this is not whether inflation has moved but whether it is beginning to influence the expectations that shape price behaviour,” he noted.

The MPC is expected to conclude its three-day meeting later this week with an announcement on the benchmark policy rate, as investors and market participants watch closely for any indication of a change in the Bank of Ghana’s monetary policy stance in response to evolving inflationary pressures.