BoG maintains medium-term inflation target of 8 ± 2%

The Bank of Ghana (BoG) has decided to keep its medium-term inflation target of 8% plus or minus 2%, despite recent increases. This decision was made after the third consecutive rise in inflation in September 2026. The Monetary Policy Committee expressed concerns about external risks due to the global economy, even though domestic conditions remained favorable.

In August, headline inflation increased, mainly due to a rise in non-food inflation. However, the Committee noted that inflation expectations were easing, and core inflation was gradually improving, indicating moderating underlying inflationary pressures. After considering both global and domestic factors, the Bank concluded that headline inflation would return to its target range over the medium term, barring any unexpected shocks.

The Bank pointed out potential upside risks to inflation, such as higher utility tariffs, increasing fuel prices, a stronger US dollar, and disruptions in global supply chains. However, these risks were anticipated to be balanced by downside factors, including fiscal consolidation, better food supply conditions, and a stable exchange rate.

In September 2026, headline inflation rose to 5.2%, compared to 5.0% in August. Monthly consumer price inflation increased by 1.1%, reversing the previous month's decline. Food prices surged to 4.0% from 3.0% in August, while non-food inflation slightly decreased to 6.2% in September 2026 from 6.8% in August.