A lecturer at the University of Ghana Business School, Professor Patrick Asuming, has pointed out that the prices of goods and services continue to rise, even with the recovery of Ghana’s economy.
He clarified that while the rate of price increases has slowed down, this does not equate to a decrease in prices.
“It appears to me that the financial and monetary aspects of the economy are performing better, while the real sector seems to be lagging behind.
“There’s a gap between public perception of the economy and the macroeconomic indicators, he stated.
He further explained that although inflation is decreasing and the Producer Price Index (PPI) has fallen from approximately 18 to 10 percent, this does not imply that prices are dropping.
“Prices are still on the rise. They haven’t gone down. The pace of increase has lessened, but that’s not the same as prices becoming cheaper,” he remarked.
“The currency has indeed strengthened, but we must consider other production factors—tariffs are increasing, wages aren’t decreasing, and domestic production costs continue to rise,” he elaborated.
He noted that the overall economic outlook appears more favorable, primarily because the government has acted swiftly to stabilize its finances.
“The government has performed well on the fiscal front. Our reserve situation has improved, partly due to policy decisions and partly due to favorable global prices for our exports.
When asked when Ghanaians might expect price forecasts in the market following the stabilization of the local currency, Dr. Asiama responded during the 124th Monetary Policy Committee (MPC) press conference in Accra on Friday, May 24, saying, “You must understand that some individuals stock their goods at a higher exchange rate, so naturally, even with the currency’s appreciation, it takes time to see that adjustment.
Source: HotFmOnline.com
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