Rising inflation: Ghanaians, university students cannot afford one meal a day – Economist

Godfred Bokpin121 Prof. Godfred Alufar Bokpin, Economist and Finance lecturer at UGBS

Fri, 10 Jun 2022 Source: www.ghanaweb.com

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The Dean of Students at the University of Ghana, Professor Godfred Alufar Bokpin has lamented the soaring rate of inflation and economic challenges in the country.

The Ghana Statistical Service on Wednesday, June 9 announced that inflation for May hit 27.6 percent – attributing the hike to high food prices and transportation costs.

The rate of inflation which makes in the highest in 18 years represents a four percentage points increase compared to the 23.6 percent recorded in April 2022.

Reacting to the development in an interview on Accra-based JoyFM, the Professor of Finance said the current economic situation has resulted in many Ghanaians who are not able to even afford one meal per day.

He stated that a vast majority of the student populace of the university simply cannot afford to pay for one meal per day.

“There are others who are deferring their programmes just because they can’t pay GH¢200. And it’s not only university students. When you drive through town and you see the streets, you see the aggressiveness with which some of them want to sell something to get themselves a meal, and it’s worrying,” the economist stressed.

He further bemoaned the gap and inequality in Ghana’s economy which he believes is becoming worse which each passing day adding that Ghanaians do not deserve the current economic hardships they are facing.

Touching on ways to mitigate the current financial challenges, Prof. Bokpin opined government must tackle the issue of inflation from the fiscal side adding that an adjustment of the monetary policy has not been entirely efficient.

“We must shift our attention to the fiscal side so that the fiscal side will respond appropriately with the discipline that it requires. Once the source of the inflation is largely fiscal, then there’s a limit to how far you can deploy the monetary policy to bring down inflation and then engineer growth," Prof. Bokpin explained.

He continued, “More so, because of the monetary policy framework that we are using under inflation targeting, because for one key requirement for inflation targeting to be effective, it is fiscal discipline. Once you deny the monetary side the fiscal discipline, then there’s no way they can use the monetary policy effectively to bring down inflation and engineer growth.”

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Source: www.ghanaweb.com
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