Ghana’s inflation rate could further increase in the coming months – Economist

Inflation Arrow Ghana's inflation hit 19.4% for March 2022

Tue, 19 Apr 2022 Source: www.ghanaweb.com

Ghana records 19.4% for March 2022

Current market trends, developments worrying – Dr Patrick Asuming

Food, transporting, housing push inflation figures up

Ghana’s inflation rate is expected to further spike significantly in the coming months before it makes a downward turn, an economist, Dr. Patrick Asuming, has predicted.

Recent figures released by the Ghana Statistical Service showed national inflation for March 2022 hit 19.4 percent - a 3.7 percentage point higher than the 15.7 percent recorded in February 2022.

In an interaction with Citi Business News, Dr Patrick Asuming said the prediction is based on current market developments and trends which could hamper economic growth.

“It is worrying because the rate of increase is beginning to pick up quite substantially. If you check, even though they have been going up, the percentage points increases have been going up and this is a problem. And you also see that the inflation is now highly entrenched and heavily broad-based."

"So even though food inflation is the major driver, you see that non-food is picking up and then when you look at both imported and local, the inflation is going up on all of them. So, I think it’s worrying,” he is quoted to have said by Citi Business News.

Touching on measures to mitigate this surge, Dr Asuming said the central bank has to be circumspect and monitor developments before increasing its monetary policy rate at its next meeting.

“I think the Bank of Ghana will probably have to be careful before they keep jacking up rate. I think they will wait and observe how the last round of increases plays out. It’s not even been a month since they last increased it, so I don’t think they will be in a hurry to raise this rate."

He continued, "In any case, they had anticipated it, so I don’t think rate hikes should be the next action, but I think when you look at the numbers, they clearly suggest that the high inflation is going to remain with us for a while.”

Meanwhile, the GSS figures for March this year attributed the surge in inflation due to hikes in food prices, transportation, and housing.

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Source: www.ghanaweb.com
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