The Bank of Ghana says the recent rise in inflation remains a key issue for the Monetary Policy Committee as it assesses the appropriate monetary policy stance.

The Governor of the Bank of Ghana, Dr Johnson Asiama, said headline inflation has increased from a low of 3.2% in March to 5.0% in August, representing a cumulative increase of 1.8 percentage points over five months.

Speaking at the opening of the 132nd MPC meeting, Dr Asiama noted that inflation remains below the lower bound of the Bank’s target band of 8% ±2%, but said the upward trend requires careful monitoring.

He said the key question for the committee is whether the expected increase in inflation in the coming months will be a temporary adjustment driven by higher energy prices and administrative tariffs, or whether it could develop into more persistent pressure on inflation expectations.

"The level remains well below the lower bound of the target band, but the direction has been upward,” he said.

The Governor said the MPC will therefore assess whether the recent increase represents a one-off adjustment or could unsettle inflation expectations.

The inflation outlook is one of three key domestic issues expected to shape the committee’s deliberations, alongside developments in the external position and the interaction between fiscal and monetary policy.