The Governor of the Bank of Ghana, Dr Ernest Addison says the country’s inflation rate of 23.2 per cent is expected to ease further this year.

Speaking during a joint press briefing between the Ministry of Finance and the International Monetary Fund and Bank of Ghana on Friday, January 19, he said the BoG expects a single-digit inflation objective.

“Looking ahead to 2024, our expectation is for inflation to ease further, underpinned by continuous implementation of sound policies,” he said.

Currently, the country’s inflation rate stands at 23.2 per cent.

He pointed out that the recent trend in inflation observed in 2023 indicates that the Bank of Ghana (BoG) is making progress in fulfilling its mandate to stabilize prices, adding that inflation was approximately 54% in January 2023.

According to him, “Through strong and innovative policies, tight monetary conditions and relative exchange rate stability, inflation has been more than halved by the end of 2023.”

Dr Addison noted that several factors have contributed to the disinflation process including monetary policy stance, stable crude oil prices, favourable impact of transportation cost, relatively stable exchange rate environment, stronger foreign exchange reserve accumulation due to the gold for reserve programme, and favourable climatic conditions of the food supply chain process.

To ensure the single-digit inflation objective is achieved, he assured that the “BoG will continue to monitor both domestic and external developments and respond appropriately to ensure that the downward inflation trajectory observed in recent times, is sustained without undermining growth.”