Business News of 2013-12-03

Inflation target for 2013 will be missed - BoG

The Bank of Ghana (BoG) has affirmed that the country will not meet its end of year inflation rate target.

Government set an end of year target of nine percent for this year.

However, an increase in the price of petroleum products early this year saw inflation rate hitting double digits.

From 10 percent in February, inflation rate is now at 13.1 percent.

Early this year, the BoG asserted that based on its own econometric models the target was likely to be met.

But Governor of the Central Bank, Dr Henry Kofi Wampah says the end of year rate will not be met and would be much higher than the target set.

“We think it will still be around where it is now about 13.1% I don’t think that it will be very different from this perhaps a little bit lower than that but definitely we believe that it will be higher than the nine percent. Of course it cannot come down to below 9% or the target of 9% or even the upper part, it is unlikely that we will see it falling within the upper limit of 11%.”

“So we think it will remain there but as we said the main reason we think is the tariff increases especially occurring very late in the year,” he added.