9.2% inflation expected by Bank of Ghana

Jul 23, 2010

The Bank of Ghana has predicted an end-of-year inflation rate of 9.2 per cent for 2010.

Inflation of 9.2 per cent has been predicted by the Bank of Ghana for the end of the year, due to the institution's expectations that inflation-average change in price level will stay low until 2011. The Monetary Policy Committee explained in a press briefing fiscal consolidation teamed with lower fuel and food prices would help meet the target. As a result, the organisation added it "does not expect a significantly altered path of inflation in the second half of 2010".

Furthermore, the body went on to state: "The Monetary Policy Committee maintains the view that price stability is an important policy goal." The prediction was announced at the same time as reducing the monetary policy rate to 13.5 per cent.

Inflation has dropped significantly since June 2009, when the figure stood at 20.7 per cent. Governor of the Central Bank Kwesi Amissah-Arthur recently told Joy Business that despite concern about the country's fiscal situation, he is aware of the need to react quickly should inflation "[rebound] and become very high".