Rising inflation does not augur well for the ‘livelihood of the economy’ – Peter Quartey

The 43.1 percent inflation rate in Ghana is high and does not augur well for the economy, Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana Professor Peter Quartey has said.

He noted that persons cannot live with an inflation rate of 43.1 percent.

Speaking on the Business Focus on TV3 with Paa Kwesi Asare on Monday, August 14, Prof Quartey said “I wouldn’t say we have not seen an improvement in the rate of inflation. I think in your introduction you said we went as far as 64 percent plus in November 2022. Gradually, it has tapered downwards, we are now around 43.1 percent.

“That is still very high, I agree, you cannot live with inflation of about 43 percent, it doesn’t augur well for the livelihood of any economy. But just to make the point that yes, we are achieving some results but it is not very significant.”

The inflation rate for the month of July 2023 went up to 43.1%, from the 42.2% recorded in June, the Ghana Statistical Service (GSS) announced. The month-on-month food inflation was, however, 3.8%.

Non-Food Inflation stood at 38.3% in July 2023, from 33.4 % recorded in June 2023. The month-on-month non-food inflation was, however, 3.4%

Inflation for locally produced items was 37.5%, whilst inflation for imported items was 45.7%.

Five divisions recorded inflation higher than the national average.

They were Personal Care, Social Protections and Miscellaneous Goods and Services (60.5%); Furnishing, Household Equipment and Routine Household Maintenance ( 56.9%); Food and Non-Alcoholic Beverages (55.0%); Alcoholic Beverages, Tobacco and Narcotics (48.7%) and ((48.7%); and Housing, Water, Electricity, Gas and Other Fuels (47.4%).

10 food items recorded inflation higher than overall food inflation

For food inflation, Tea and Related Products (150.0%); Cocoa Drinks (86.5%); Fruits and Vegetables Juices (66.7%); Cereals and Cereal Products (64.2%); Sugar, Confectionary and Desserts (62.7%); Oil and Fats (59.5%); Milk and Other Diary Products and Eggs (58.3%); Coffee and Coffee Substitutes (58.2%); Fish and Other Sea Foods (57.7%) and Live Animals, Meat and Other Parts of Slaughtered Land Animals (55.2%); recorded year-on-year inflation higher than the overall food inflation.