Economic crunch: Importers & Exporters hint of 40% price hikes for goods

Tema Port Ariel View121 Tema Port [File Photo]

Sat, 13 Aug 2022 Source: www.ghanaweb.com

The Importers and Exporters Association of Ghana has hinted at hikes in the price of goods by about 40 percent.

Executive Secretary of the Association, Sampon Awingobit said the increase will likely be necessitated if inflation continues to surge and the local currency further depreciates in value.

Speaking in an interview with Accra-based Citi FM, Sampon Awingobit said the association may be forced to pass on the cost to consumers in order for exporters to stay in business.

“Prices have to go up, and they will continue to go up. Inflation is 31 percent so we can also increase prices by 40 percent. We have to hedge ahead, so we will be in our comfortable positions. We know it’s not okay to increase prices, but the current circumstances demand it until government does otherwise, that will be the way to go,” the Executive Secretary said.

Meanwhile, the Ghana Statistical Service on August 10 announced that the inflation rate for July climbed to an all-time high of 31.7 percent, representing a 1.9 percent increase between June and July 2022.

Government Statistician, Prof. Kobina Annim speaking with journalists in Accra said, “We composed this from two perspectives, the food and non-food inflation and from a domestic and imported perspective. From the food and non-food inflation, we recorded food inflation of 32.3% and 31.3% for non-food inflation.

“From the domestic perspective, we recorded 29.2% and imported inflation of 31.3%.”

In addition to the inflation hike, the cedi has been struggling against major trading currencies, especially the US dollar.

According to a Bloomberg survey, the local currency recorded a -28.82% depreciation to the dollar as of August 8, 2022.


Source: www.ghanaweb.com