Though Inflation showed a significant drop to about 26% in November last year, industry experts foresee relative instability for 2024.
Inflation experienced the notable decline dropping to approximately 26% in November 2023 from over 50% at the beginning of 2023.
An Economist and Dean of the University of Cape Coast Business School, Prof John Gatsi speaking on the prospects of this year says, inflation does not promise to be very stable in 2024.
He explained that, so many taxes measures has been approved in the 2024 budget and that when implementation starts, it will have impact on prices.
“…I believe inflation should not be considered to be stable in 2024” he said.
According to the Ghana Agricultural Workers Union (GAWU), food inflation is expected to remain high throughout the year despite the government’s introduction of Planting for Food and Job (PFJ) phase two.
Mr Edward Kareweh, the general secretary of GAWU explained that, food inflation in 2024 is going to be dependent on the production of 2023.
“In 2024, food inflation is going to be dependent on the production of 2023. As we know the food we will be eating January, February, March and April is the one that we have produced in 2023, so government plan to have the phase 2 is not implemented in 2023”.
Meanwhile, the Ghana Union of Traders Association (GUTA) remains optimistic about achieving some level of relative price stability in the market.
The President of the Association, Dr Joseph Obeng indicated, “definitely, prices should be stabilised especially when we have the stability of our local currency. But the only problem is that, whiles the stability of the currency, the other factors of cost of doing business still remains the same.
That’s why we cannot only talk about the stability of the currency and leave other cost of doing business”.
He added, “ Prices are going to be stabilised because the major factor of our costing normally is on the exchange rate so if the exchange rate is controlled reasonably then prices can also follow through”.
Dr Obeng also urged government to increase efforts in getting the second tranche of US$600 million from the International Monetary Fund (IMF) to support the stability process.
He called for a conscious effort to invest and ensure that industries operated in an environment that would make them produce more at affordable prices and competitive for both local consumption and export.
Nana Ama Nyamekye /Ahotoronline
