Inflation to come down in coming months - BoG assures

Inflation Spain Inflation rises to 27.6% in May 2022

Mon, 13 Jun 2022 Source: www.ghanaweb.com

Policy rate revised to 19%

Inflation jumps to 27.6%

Monetary policy will begin to work soon - BoG

The Bank of Ghana has stated that the country’s current inflation trends will not continue forever.

According to the Director of Research of the central bank, inflation will begin to reduce after it has peaked in the coming months.

The soaring prices of goods and services in the country have pushed inflation to an all-time high of 27.6% in May 2022 from 23.6% in April 2022.

But Dr. Philip Abradu Otoo, speaking at a Financial Literacy Programme for Journalists, assured that the Monetary Policy Committee of the Bank of Ghana is putting measures in place to address the rising inflation.

“It’s a marginal slowdown, but if you recall the Governor [Dr. Ernest Addison] at his press conference said inflation will peak around June 2022 and July 2022. The numbers came in a little strong this time, but I think the numbers will come down; it cannot continue forever”, he said.

According to him, research has shown that this year’s rainfall pattern will help to achieve a bumper harvest in the agriculture sector, which will help check food prices.

“Monetary policy will begin to work. Our discussion with the Meteorological Department shows that the rains this year are better than that of last year, which forecast an improvement in the food situation somewhere in September [2022], whereas the Monetary policy continues to work around the non-food sector”, he added.

He also explained that Ghana’s debt is depleting most part of the country’s reserves.

“The first is debt which is a fiscal problem and we see debt consuming part of our reserves. The debt problem; when the government wants to service its debt, it normally provides the Central Bank with cedis and we then rely on our reserves to make settlement”, he revealed.

“We are coming back and the economy is rebounding from COVID-19. And we’ve seen economic activities pick up and imports have risen significantly."

Source: www.ghanaweb.com
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