Rising inflation: Planting for Food and Jobs need to be reviewed

Inflation hits 27.3% in May

Food and transport drove inflation to 27.3%

Imports responsible for increasing inflation

Economist and Senior Lecturer at the Department of Economics at the University of Ghana, Dr. Adu Owusu Sarkodie has noted that Ghana cannot be in the position where high food prices are driving inflation high even though the country has been running the Planting for Food and Jobs programme.

He noted that the Planting for Food and Jobs needs to be reviewed if the country is not able to produce certain common food types.

“Some of the agricultural items with high inflation rates can be produced in Ghana. And that is why often time questions are asked about government’s Planting for Food and Jobs (PFJ) policy. If you have done a PFJ policy which has run for 5 years, and simple produce like maize, avocado, watermelon, and the likes are the ones driving inflation then that program must be relooked at.”

Furthermore, he argued that the current inflation crisis cannot be solved by using on the monetary policy rate by the Bank of Ghana.

According to him, other sectors of the economy including government, must employ other fiscal measures to deal with the problem.

“The fight against inflation is not working because it is a supply-side issue and the BoG is doing its part. The onus lies on the fiscal side and the real actors like the Ministry of Finance which needs to be fiscally disciplined. The Agriculture Ministry and the Trade Ministry all need to answer questions.”

Food and transportation pushed Ghana’s inflation to 27.3% in May from 23.6% in April 2022.

Analysts have lamented the country’s inability to produce some basic food items even with the implementation of planting for food and jobs.

The Ghana Statistical Service has detailed 15 items that accounted for the rise in inflation.

Grapes topped the year-on-year inflation for May 2022 with 100.8%, followed by diesel, 81.1%.

Firewood, watermelon, petrol, maize, corn dough/corn flour, gas, washing soap, charcoal, wheat flour, avocado pear, vegetable oil, groundnut oil, margarine made up the 15 drivers of inflation.