BoG Reaffirms Commitment to Price Stability
The Bank of Ghana has reaffirmed its commitment to maintaining price stability, signalling a continued reliance on deeper, evidence-based analysis to guide monetary policy decisions as the country works to consolidate recent disinflation gains and strengthen overall macroeconomic stability.
Speaking at the launch of the 2025 Annual Inflation Report in Accra, First Deputy Governor Dr. Zakari Mumuni emphasised that inflation remains the central signal guiding the Bank’s policy stance. However, he cautioned that headline inflation figures alone are not sufficient for effective policy formulation.
“Inflation is not merely a statistic, it is the primary signal that guides monetary policy decisions,” he stated, stressing the need for policymakers to go beyond aggregate data and examine the underlying structure, persistence, and drivers of price movements.
The newly introduced Annual Inflation Report is designed to provide a more comprehensive and structured assessment of inflation dynamics in Ghana. Unlike routine monthly or quarterly publications, the report offers deeper analytical insights into price behaviour across different sectors, helping policymakers better distinguish between temporary shocks and long-term inflationary pressures.
The Bank of Ghana noted that inflation in 2025 was influenced by a combination of domestic and external factors, including exchange rate volatility, food price fluctuations, and global commodity price movements. In response, the central bank implemented a tight monetary policy stance aimed at anchoring inflation expectations and restoring macroeconomic stability.
Dr. Mumuni explained that inflation is “inherently multidimensional,” requiring detailed decomposition into its core components to support more precise policy responses. This approach, he said, allows policymakers to better separate transitory shocks from persistent inflation trends, thereby improving the effectiveness of interest rate decisions and broader monetary transmission.
He also highlighted a growing global shift toward forward-looking monetary policy frameworks, where central banks increasingly rely on inflation expectations data and disaggregated price indicators rather than historical averages alone. According to him, this evolution is essential for improving the responsiveness and accuracy of policy interventions.
“In this context, strengthening the production and dissemination of detailed inflation statistics is not just desirable, it is essential,” he added.
The Bank of Ghana commended the Ghana Statistical Service for supporting the development of the report, describing it as a significant step toward improving transparency, strengthening analytical capacity, and enhancing the evidence base for economic policymaking.
Dr. Mumuni further reiterated the Bank’s unwavering commitment to its price stability mandate, noting that sustaining low and stable inflation will depend on a combination of appropriate policy actions, credible communication, and strong institutional coordination across the economic management framework.
He indicated that the Annual Inflation Report is expected to become a key reference document for policymakers, researchers, financial analysts, and market participants. It is also expected to play a critical role in anchoring inflation expectations as Ghana continues efforts to stabilise the macroeconomic environment and build confidence in its economic recovery trajectory.
Overall, the message from the central bank was clear: maintaining price stability will require not just decisive policy action, but also better data, deeper analysis, and sustained institutional discipline.
