The Bank of Ghana has underscored the urgent need for stronger and more reliable inflation data to support effective monetary policy and ensure long-term economic stability.
This call was made by the First Deputy Governor, Zakari Mumuni, during the launch of the 2025 Annual Inflation Report by the Ghana Statistical Service.
According to Dr. Mumuni, high-quality inflation data is not just a technical requirement but a critical pillar in shaping sound economic policy. He explained that inflation figures serve as the primary signal that guides central bank decisions, influencing interest rates, liquidity management, and broader macroeconomic strategies.
“Understanding not just the level of inflation, but its composition, persistence, and underlying drivers is essential for effective policy formulation.”
Zakari Mumuni
Beyond headline inflation figures
Dr. Mumuni emphasised that inflation is far more complex than a single headline number. While monthly inflation figures provide a snapshot of price movements, they often fail to capture the deeper dynamics influencing the economy.
He noted that the newly introduced Annual Inflation Report offers a more comprehensive analysis, allowing policymakers to examine inflation trends across sectors and over extended periods. This, he said, enables authorities to distinguish between temporary shocks and sustained inflationary pressures.
Such insights are crucial in determining whether inflation is driven by short-term disruptions, such as supply chain issues, or by more persistent factors like demand pressures or structural inefficiencies within the economy.
Data-driven decision making
The First Deputy Governor highlighted that modern central banking increasingly relies on data-driven approaches. He explained that forward-looking indicators, expectations data, and disaggregated inflation statistics are becoming essential tools for policymakers.
These tools help central banks anticipate future trends rather than merely reacting to past developments. As a result, the quality, consistency, and timeliness of data have become more important than ever.
Dr. Mumuni stressed that without accurate and detailed data, policy responses risk being ineffective or even counterproductive. Poor data quality can lead to misinterpretation of economic conditions, resulting in inappropriate policy measures that may destabilise the economy.
Factors shaping inflation in 2025
Reflecting on recent trends, Dr. Mumuni observed that inflation developments in 2025 were influenced by a mix of domestic and external factors. Key drivers included exchange rate fluctuations, changes in food prices, and movements in global commodity markets.
He also pointed to the role of monetary policy interventions by the central bank, particularly tightening measures aimed at controlling inflation. These actions, he said, were designed to anchor inflation expectations and restore stability in the macroeconomic environment. “These actions were aimed at anchoring inflation expectations and restoring durable stability in the macroeconomic environment,” he explained.
Dr. Mumuni commended the Ghana Statistical Service for producing the maiden Annual Inflation Report, describing it as a significant step forward in strengthening Ghana’s economic data infrastructure.
He noted that collaboration between institutions is essential for improving data quality and ensuring that policymakers have access to reliable information. Strong partnerships between statistical agencies, government bodies, and the central bank can enhance data collection, analysis, and dissemination.
Improved transparency in data reporting, he added, will also help build public trust and credibility in economic policy decisions.
The Bank of Ghana, meanwhile, called for sustained investment in the production and dissemination of detailed inflation statistics. Dr. Mumuni stressed that building robust data systems requires resources, technical expertise, and continuous innovation.
He highlighted the need for advanced data collection methods, improved analytical tools, and capacity building within institutions responsible for economic statistics. Such investments, he argued, are essential for keeping pace with the evolving demands of modern economic management. “As we look ahead, the role of data in monetary policy will become even more important,” he said.
Anchoring expectations and ensuring stability
A key benefit of improved inflation data is its ability to anchor public expectations. When businesses, investors, and households have access to reliable information, they are better equipped to make informed decisions.
This, in turn, enhances the effectiveness of monetary policy. Clear and credible data reduces uncertainty, strengthens confidence in the economy, and supports sustainable growth.
Dr. Mumuni reiterated that achieving low and stable inflation requires more than just policy interventions. It also depends on the availability of high-quality data and strong institutional frameworks.
Commitment to price stability
The Bank of Ghana reaffirmed its commitment to maintaining price stability, which remains its core mandate. Dr. Mumuni noted that sustaining low inflation is critical for economic growth, job creation, and improved living standards.
He stressed that reliable data will continue to play a central role in achieving this objective. By strengthening its analytical toolkit and enhancing collaboration with key stakeholders, the central bank aims to navigate economic challenges more effectively.
The call for stronger inflation data reflects a broader recognition that informed decision making is the backbone of economic stability. As Ghana continues to pursue macroeconomic resilience, investing in high-quality data systems will be essential in shaping a more stable and prosperous future.
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