The central bank's recent Inflation Outlook Report has indicated that the country is likely to miss its set out target for single-digit inflation for 2020.

This is as a result of the sharp rise of inflation in the second quarter of the year amid the rapid price increase in food items and food supply in the value chain.

The Bank of Ghana in its report noted that disruptions in the disinflation process has a chance of extending the time frame for reaching a stable state of inflation.

“The projections show a return of inflation to the medium-term target band by the second quarter of 2021, partly conditional on corrective fiscal measures being introduced in the near-term”, the report explained.

Meanwhile, should the recent inflation trend continue to move upwards, the Monetary Policy Committee of the central bank may be compelled to revise its monetary policy rate which is currently pegged 14.5 percent.

This could however affect the cost of credit as well as the rate at which the central bank lends to commercials banks.

Latest figures from the Ghana Statistical Service (GSS) indicates that inflation is currently above its higher limit.

Currently, the inflation rate has risen to 11.2 percent in the second quarter of 2020 after it remained flat at 7.8 percent in the first quarter of the year.