The Bank of Ghana has expressed concerns about the uncertainty regarding the inflation path for the rest of the year, given recent exchange rate pressures, upward adjustment in utility tariffs and increases in ex-pump fuel prices.

According to its July 2024 Monetary Policy Report, the above developments have resulted in a slightly elevated inflation profile for the year.

However, inflation is expected to remain within the target band of 17+/-2% for the year.

This is because the risks are tilted slightly on the upside.

“Mitigating the current risks to inflation will require continued maintenance of a tight monetary policy stance supported by strong fiscal consolidation efforts, including remaining vigilant to other forms of risks to ensure that the end year inflation objectives are achieved”, it mentioned.

Domestic inflation

Headline inflation has fallen for four consecutive months to 20.4% in August 2024.

This was largely driven by food inflation. Food inflation went down to 19.1%in August 2024 from 21.5% in July 2024.