Food prices will eventually reduce but not immediately – Prof. Quartey

Peter Quartey.jpeg Professor Peter Quartey, Economist and Director of ISSER-UG

Wed, 18 May 2022 Source: www.ghanaweb.com

Inflation hits 23.6%

Food inflation pushes April inflation up

Hunger crisis looming, Joe Jackson

Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, Professor Peter Quartey has stated that food prices will eventually reduce when production increases.

Prof.Quartey is optimistic that due to the rainy season the country is currently experiencing food production is likely to increase and hopefully reduce inflation.

The latest data from the Ghana Statistical Service indicated food inflation and imports were part of the indicators that increased the country’s inflation to an average of 23.6%.

The ISSER director however explained that the rising inflation in the country can be attributed to the surge in food prices and the conflict between Russia and Ukraine.

Speaking in a TV3 interview, he said, “Where I sit, I think the inflation is coming from two sources, external that is imported inflation and domestics inflation. with the imported inflation, because we tend to import certain food items as well as other commodities, we will certainly have to import more.

“The Russian-Ukraine war the effect of Covid on import and supply chain etc, is not going to go away immediately. So certainly, we will likely see increases in inflation.”

“On the domestic front, since we import oil, we import a lot of items as well as produce some locally. Food production will pick up but not immediately because of the rainfed agriculture system that we have been having in our country therefore, as we experience rains, food production will pick up. So, in the next couple of months, we are likely to see some harvests which will minimize the effect on inflation.”

Meanwhile, analysts and industry players are projecting an impending hunger crisis in Ghana if government does not take steps to swiftly address the current hike in food prices.

Joe Jackson of Dalex Finance in a TV3 interview said, “One of the things you have to realize is that when you listen to the Ghana Statistical Service (GSS) they will tell you that the highest inflation occurred in the prices of food.

“That is why people are worried or thinking we may be heading to a crisis because the price of food when it is going so high hit the most vulnerable in the society very hard.

“The poor and vulnerable are going to be hit very hard and the fear is that we are going to a place where food prices are so high and people skipping meals because they can’t afford it.”

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Source: www.ghanaweb.com
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