Audio By Carbonatix
Headline inflation is expected to go down to the medium-term target of 8 ± 2% by the end of 2025, the Bank of Ghana has revealed in its Inflation Risk Assessment and Outlook.
According to the Central Bank, this is reflecting the impact of monetary policy tightening, the appreciation of the cedi, and the ongoing fiscal consolidation.
Moreover, it said supply-side pressures have eased, reducing their contribution to food and headline inflation. In the outlook, risks to inflation are tilted to the downside.
However, the upside risks remain, including broader supply chain challenges, global trade tensions, a 2.5% upward adjustment in utility tariffs, and the introduction of a new 1.0% energy levy on ex-pump prices, which could impact inflation.
Going forward, the Bank of Ghana said the exchange rate stability is expected to persist, supported by significant improvements in the external sector. These improvements have led to the accumulation of international reserves, far exceeding the ECF-supported program target, which will further aid the disinflation process.
Additionally, factors such as a tight monetary policy stance, ongoing fiscal consolidation, and stable crude oil prices could help offset the upside risks to disinflation.
Year-on-year inflation eased to 9.4% in September 2025, fueled by a significant drop in food inflation.
It was the 9th consecutive month decline.
Latest Stories
-
UK social media campaigners among five denied US visas
3 hours -
BP sells stake in motor oil arm Castrol for $6bn
4 hours -
GPL 2025/26: Asante Kotoko beat Eleven Wonders to go third
6 hours -
Algerian law declares France’s colonisation a crime
6 hours -
Soldiers remove rival Mamprusi Chief Seidu Abagre from Bawku following Otumfuo mediation
6 hours -
Analysis: How GoldBod’s operations led to a $214 million loss at the BoG
7 hours -
Why Extending Ghana’s Presidential Term from Four to Five Years Is Not in the Interest of Ghanaians
7 hours -
Young sanitation diplomat urges children to lead cleanliness drive
7 hours -
Energy sector shortfall persists; to balloon to US$1.10bn in 2026 – IMF
7 hours -
Gov’t secures $30m Chinese grant for new university of science and technology in Damongo
7 hours -
Education Minister commends St. Peter’s SHS for exiting double-track, pledges infrastructure support
7 hours -
ECG to be privatised – IMF reveals in Staff Report
7 hours -
Accra Unbuntu Lions Club impacts 500,000 Ghanaians in 5 years of social service
7 hours -
VALCO Board holds maiden strategic meeting with management
8 hours -
African Festival: Nollywood star Tony Umez joins Nkrumah musical in Accra
8 hours
