Calls for price reduction valid as inflation drops to 35.2% - Prof. Gatsi

An economist, Prof. John Gatsi, has noted that calls for the reduction of prices on the market are valid after the drop in the country’s inflation rates over the last few months.

He said the drop from over 50% to 35.2% is enough to have an effect on the policy rate and cause price reductions on the market.

He said “35.2 percent inflation dropping means that inflation has dropped around 18 %.

“That 18 percent is actually in enough to influence the policy rate and it is also supposed to be influencing prices on the market. So I believe people are right when they express this concern of ensuring price reduction,” Prof Gatsi was quoted by 3news.com.

Ghana’s monthly inflation declined for a third consecutive time from 38.1 percent recorded in September to 35.2 percent in October 2023.

Recent figures released by the Ghana Statistical Service attributed the development to the marginal drop in food inflation.

Government Statistician, Professor Kobina Annim said food inflation in the period was pegged at 44.8 percent, while non-food inflation was 27.7 percent.

In addition to the figures, inflation for locally produced items was pegged at 34.4 percent while imported items stood at 34.4 percent from an earlier 37.4 percent in September 2023.

CPI measures the changes in the price of a fixed basket of goods and services purchased by households — with the assumption that households purchase a basket of goods and services monthly, hence price changes occur monthly.

SSD/NOQ

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