Government has to be serious in managing monetary business to tame inflation - GUTA

President of the Ghana Union Traders Association (GUTA), Dr. Joseph Obeng, has said government needs to pay attention to the management of the country's monetary business to tame inflation.

Speaking on Citi FM's Eyewitness News, he urged government not to be complacent despite the current inflation rate pegged at 26.4% as of November this year.

He opined that if the second tranche of the IMF loan comes on time, it can sustain the country's macroeconomic gains.

“The inflation was at 54.1%, the exchange rate was very high. In the last quarter of 2022, we experienced large rates of depreciation. When the first tranche of the IMF loan of $600 million came, we experienced long-term stability of the cedi. I think that is what is doing the magic of pulling the money down. Inflation has been at 54.1%, and it’s seeing a current decline of 26.4%. Once inflation is declining, we should be seeing the effects of that in the market. Are we seeing that?” Dr Joseph Obeng queried.

He stated that “We should not be complacent, especially when the second tranche of the IMF loan hasn’t come in. If it comes within time, we can sustain the gains we have got so far. We have to be serious in managing our monetary business to maintain the current inflation rate."

The country’s year-on-year inflation rate fell to 26.4 per cent in November 2023 from the 35.2 percent recorded in October 2023.

This is the lowest in thirteen months, the Ghana Statistical Service (GSS) has indicated.

Government Statistician, Professor Samuel K. Annim, while addressing a news conference in Accra said food inflation was the major contributor to the drop in inflation during the period under review.

SA/NOQ

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