Gov’t dreams of 25% inflation

Government is likely to achieve its targeted end-of-period rate of inflation of 25 per cent for this year. This is because figures released by the Statistical Services show that inflation at the end of September dropped to 28.3 per cent from 32.0 per cent in August.

The food index showed a monthly change of 0.9 per cent and a nine-month average growth of 1.7 per cent. Economists attributed this development to a good food harvest due to favourable rains this year that accounted for the slow growth in the food index.

Sub-groups in the non-food index recorded were increase in clothing and footwear being 1.4 per cent, housing and utilities 2.0 per cent, household goods 2.1 per cent, medical expenses 2.9 per cent, transport and communication 1.2 per cent and recreation 1.8 per cent.

Mr Charles Adjarsi, an economist noted that these figures and their implications suggest some level of macro economic stability, which is very desirable and needed. However, the question some Ghanaians have been asking is whether these figures are a true reflection of the current situation.

Others are of the opinion that their supposed effects are not being felt in their pockets whilst others think that the present phenomenon is nothing new and nothing to be jubilant about.

Mr Adjarsi cautioned that the problem with the food component of the Consumer Price Index (CPI) is, however, still persisting adding that government must take a closer look at it.