Budget 2025 Set to Address Food Inflation——The Governor of the Bank of Ghana, Dr. Johnson Asiama, has announced that the forthcoming 2025 budget will introduce several measures aimed at curbing food inflation, a key factor behind the overall rise in prices.
With the surge in food prices putting additional strain on both household budgets and business expenses, the central bank believes that well-targeted fiscal policies are vital for price stabilization and maintaining macroeconomic stability. The budget will be presented to parliament on March 11.
In an interview with Bloomberg on inflation trends, Dr. Asiama pointed out that the most recent inflation figure exceeded expectations, largely due to the upward pressure from food prices. He stressed that these food-related inflationary pressures are deeply rooted and call for decisive policy action.
“Last reading came in a little higher but we think that going forward if you look at the causes of the inflationary pressures, it was mainly from food inflation. It was mainly structural in nature, and so therefore the coming budget statement, which is about to be presented, should be presenting a number of measures that can contain food inflation. If that is done, I am sure we will see a return to the disinflation path,” he stated.
Dr. Asiama also disclosed that the Bank of Ghana‘s Monetary Policy Committee (MPC) is set to meet next month to review the current economic conditions and determine the next steps for monetary policy.
“We plan to hold the next monetary policy meeting next month where we will reassess the conditions and take an appropriate decision. Therefore, once we have an appropriate monetary policy stance in place and then also food price inflation is well controlled, we will begin to see inflation trending back to its target path,” he added.
