Ghana’s skyrocketing inflation due to high cost of doing business - GUTA

The Ghana Union of Traders Association (GUTA) has once again bemoaned the high cost of doing business in the country.

President of the Association, Dr Joseph Obeng, in an exclusive interview with GhanaWeb Business attributed the high inflation recorded in recent times to cost-push inflation.

This cost-push inflation drives up production costs and businesses subsequently pass them on to customers to either break even or make a profit.

The GUTA President, in the exclusive interview with GhanaWeb's Ernestina Serwaa Asante, said the high duties paid at the ports, high-interest rates on loans, among other taxes lead to a hike in the prices of goods and services.

Dr Joseph Obeng said, "The inflation we are experiencing if everybody wants to know is a cost-push inflation. The fact that there are too many cost items. The taxes, the duties that we pay, the interest rate and all that have made the prices go up so until we are able to tone down this cost of doing business, prices will keep on going up."

Inflation for the month of June 2023 increased marginally to 42.5 percent compared to the 42.2 percent recorded in May.

According to the government Statistician, Professor Samuel Kobina Annim, the main drivers of this inflationary trend are food and non-food items, which account for 54.2% and 33.4% respectively.

Locally produced items witnessed an inflation rate of 35.9%, while imported items had a higher inflation rate of 44.5%.

ESA/NOQ

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