Recent surge in oil prices has renewed inflation concerns – Governor Asiama
Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has said that the global headline inflation has been on a downward trajectory.
However, he said, the recent surge in oil prices has renewed inflation concerns and may compel some central banks to reassess their monetary policy stance.
Addressing the 129th Monetary Policy Committee Press conference in Accra, he said that the conflict has disrupted global supply chains, increased crude oil market volatility, raised financial stability concerns, and heightened global uncertainty.
Consequently, he said, the global financing conditions, which remain broadly accommodative, could tighten in the near term.
“Depending on the intensity and duration of the conflict, these developments could weigh on the global economic outlook,” Dr Asiama said.
On the domestic front, Dr Asiama noted that the provisional data released by the Ghana Statistical Service indicated that real GDP grew by 6 per cent in 2025, compared with 5.8 per cent in 2024. Non-oil GDP growth accelerated to 7.6 per cent from 6.1 per cent over the same period, largely driven by the services and agriculture sectors.
He said the central bank’s high-frequency real sector indicators pointed to a sustained pickup in
economic activity.
“The real Composite Index of Economic Activity recorded an annual growth of 8.4 per cent in January 2026 compared to 6 per cent for the corresponding period of 2025. Increased credit to the private sector by banks, industrial production, international trade activities, and consumption of goods and services by households and firms contributed to the improvement in economic activity.
“The Bank’s confidence surveys conducted in February 2026, reflected positive consumer and business sentiments. Consumer confidence improved on account of easing inflationary pressures and optimism about future economic conditions.
“Similarly, business confidence strengthened on the back of realisation of operational targets and optimism about industry prospects amid improving macroeconomic conditions.”
Source: 3n ews.com by Laud Nartey
