Headline: Bank of Ghana holds medium-term inflation target at 8 ± 2% despite September rise to 5.2%
The Bank of Ghana maintained its medium-term inflation target of 8 ± 2% at the 132nd Monetary Policy Committee meeting, despite inflation rising for the third consecutive month. Year-on-year headline inflation increased to 5.2% in September 2026, up from 5.0% in August.
The Committee noted the rise in inflation followed an uptick in August driven mainly by non-food inflation. Food inflation rose to 4.0% in September from 3.0% the previous month, while non-food inflation eased slightly to 6.2% from 6.8%.
Consumer Price Inflation also reversed its downward trend, climbing 1.1% month-on-month in September after a decline in August. The Committee expressed concern about external risks from the global economy, which it described as elevated, despite relatively favourable domestic conditions.
“Upward adjustments in utility tariffs, rising ex-pump petroleum prices, strengthening of the US dollar, and adverse spillovers from global supply chain disruptions posed upside risks to the inflation outlook,” the Committee said in its statement.
However, these upside risks were expected to be counterbalanced by downside factors including fiscal consolidation, improved food supply conditions, and exchange rate stability. The Committee observed easing inflation expectations and a reduction in core inflation, suggesting underlying inflationary pressures were moderating.
The Bank of Ghana’s decision to keep the inflation target unchanged reflects its assessment that headline inflation remains on course to return to the 8 ± 2% range over the medium term, barring shocks.
The Committee’s statement was issued amid ongoing global economic uncertainties that are exerting pressure on Ghana’s inflation outlook. The strengthening of the US dollar and supply chain disruptions have complicated efforts to maintain price stability.
The Bank of Ghana’s inflation target guides monetary policy decisions and influences interest rates, with the aim of keeping inflation within a range that supports economic growth and protects purchasing power.
September’s inflation figures represent a modest rise but remain well below the medium-term target ceiling. The central bank’s cautious outlook signals it is prepared to adjust policy should inflation pressures intensify or shocks materialize.
The Monetary Policy Committee will continue to monitor inflation trends closely as it balances external risks with domestic economic conditions.
According to Joy Online.
