Inflation Down

The Governor of the Bank of Ghana, Dr. Paul Acquah, has announced that the rate of inflation has continued to edge downwards and now stands at 13.1 percent at the end of August compared to 13.5 percent in July. The Governor said this comes against an end of year target of 13.0 percent set by the Central Bank in consultation with the government.

He said the downward trend in the country's rate of inflation, "provides further evidence that monetary and fiscal policies are on course and the economy is on path towards sustainable dis-inflation". He also described the development as "good news" and urged the business sector to take the opportunity to make more investments because the prospects in the economy look very favorable in the days ahead.

The Governor was addressing a press conference in Accra last Friday to brief the media on the outcome of deliberations during a workshop organised by the Central Bank for members of the newly launched Monetary Policy Committee (MPC).

He said it is important that monetary policy focuses on the goal of price stability. He said it is also important that decisions taken by the MPC be based on sound data and rigorous economic analysis. The importance of communication of monetary policy decision with the public is essential because the MPC process requires consensus.