By Jibril Abdul Mumuni, GNA
Accra, Oct. 26, GNA – Ghana may soon reduce the time it takes to monitor inflation trends as researchers at the Bank of Ghana (BoG) have developed an Artificial Intelligence (AI)-powered inflation tracking system capable of providing near real-time estimates of consumer price movements.
The innovation, known as e-Inflation, uses Big Data and AI techniques to monitor prices across online platforms and generate inflation estimates before official figures are released.
Researchers say the new model could help policymakers, businesses and investors access timely information on inflation developments, improving economic decision-making.
At present, official inflation data are compiled through conventional price collection methods and are typically published after the end of each reference month.
The study said the delay, though necessary for data validation and compilation, can limit the ability of policymakers and market participants to respond quickly to changing economic conditions.
To address the challenge, the researchers developed an AI-based framework that collects and analyses large volumes of price data obtained from websites and other digital sources.
The model relies on web-scraping tools and machine learning algorithms to track prices of goods and services frequently purchased by consumers, providing an alternative measure of inflation in near real time.
The study said the system demonstrated a strong ability to mirror official inflation trends, suggesting that AI-driven estimates can serve as a reliable complement to traditional statistical methods.
It found that the e-Inflation measure closely tracked Ghana’s official inflation rate over the study period, offering early signals of changes in the cost of living.
It said real-time inflation indicators could be particularly useful for the Bank of Ghana’s Monetary Policy Committee, whose decisions on interest rates often depend on current and expected inflation developments.
The study also highlighted the growing role of digital technology in economic management, noting that the increasing use of online platforms by businesses and consumers had created new opportunities for collecting price information at a lower cost and higher frequency.
It, however, stressed that the AI tool was not intended to replace official inflation statistics compiled by the Ghana Statistical Service but rather to complement existing methods by providing faster insights into emerging price trends.
Wider adoption of Big Data and AI technologies could improve the timeliness of economic statistics, strengthen policy analysis and support efforts to maintain price stability as Ghana’s digital economy continues to expand.
GNA
Edited by Agnes Boye-Doe
Reporter: Jibril Abdul Mumuni
Email: [email protected]