ACCRA, July 1 – Ghana’s annual inflation rate accelerated to its highest level of the year in June, increasing the likelihood that the Bank of Ghana will maintain its current monetary policy stance when policymakers meet later this month.
According to figures released by the Ghana Statistical Service, consumer prices rose 5.3% year-on-year in June, up from 3.7% recorded in May.
Government Statistician Alhassan Iddrisu announced the latest inflation data during a press conference in Accra, highlighting a rebound in annual price pressures despite a moderation in monthly inflation.
While annual inflation accelerated, month-on-month consumer price growth eased significantly. Prices increased by 0.2% in June, compared with 1.1% in May, suggesting that the pace of short-term price increases slowed even as the annual inflation rate moved higher.
The latest inflation figures are likely to be closely monitored by the Bank of Ghana, which has prioritised price stability as it navigates the country’s economic recovery. A higher annual inflation reading could strengthen the case for keeping interest rates unchanged to ensure inflation remains contained while supporting broader macroeconomic stability.
Ghana has made notable progress in restoring economic stability following recent fiscal reforms and support from international financial institutions. However, inflation remains a key indicator for policymakers as they balance the need to sustain economic growth with efforts to preserve price stability.
Investors and businesses will now turn their attention to the central bank’s upcoming monetary policy meeting, where officials are expected to assess the latest inflation data alongside broader domestic and global economic conditions before deciding on the direction of interest rates.
