The Governor of the Bank of Ghana, Dr. Johnson Asiama, has announced that the 2025 national budget will include measures specifically designed to address food inflation, a key driver of overall inflation in the country. Rising food prices have significantly impacted household expenses and business operations, prompting the central bank to call for targeted fiscal interventions to stabilize prices and sustain macroeconomic stability.Speaking in an interview with Bloomberg, Dr. Asiama acknowledged that the latest inflation figures exceeded expectations, with food price pressures identified as the primary factor. He noted that these pressures are structural and require deliberate policy actions to mitigate their impact on the economy.
“Last reading came in a little higher, but we think that going forward, if you look at the causes of the inflationary pressures, it was mainly from food inflation. It was mainly structural in nature, and so therefore the coming budget statement which is about to be presented should be presenting a number of measures that can contain food inflation. If that is done, I am sure we will see a return to the disinflation path,” he explained.
Dr. Asiama further disclosed that the Bank of Ghana’s Monetary Policy Committee (MPC) is scheduled to meet next month to evaluate current economic conditions and decide on the appropriate policy response. He emphasized that a combination of effective monetary policy and measures to control food inflation would help bring inflation back to its target trajectory.
“We plan to hold the next monetary policy meeting next month where we will reassess the conditions and take an appropriate decision. Therefore, once we have an appropriate monetary policy stance in place and food price inflation is well controlled, we will begin to see inflation trending back to its target path,” he stated.
The announcement comes as Ghana grapples with persistent inflationary pressures, heavily influenced by food prices. Experts have called for comprehensive strategies that address the structural causes of food inflation, including inefficiencies in agricultural supply chains, limited access to markets, and the impact of external shocks.The 2025 budget is expected to outline these strategies, signaling a coordinated effort between fiscal policy and monetary policy to ensure price stability. Dr. Asiama’s remarks underscore the importance of these measures in restoring confidence in the economy and returning inflation to manageable levels.With the central bank and government aligned on tackling inflation, stakeholders are hopeful that these interventions will provide much-needed relief to consumers and businesses alike