Government Statistician casts doubt on inflation target

The government statistician, Dr. Philomena Nyarko has cast doubts over Ghana’s ability to achieve an inflation target of 8% in 2016.

According to Dr. Nyarko, the country’s ability to achieve the set target will be based on government’s commitment to stabilize fiscal indicators.

Though government missed its inflation target for 2015– after revising the target from 11.5 percent to 13.7 percent, it is optimistic it can meet the inflation target of  8 percent plus or minus two.

Meanwhile, some economists have cast doubt over government’s ability to achieve the 8% inflation target for 2016, citing increasing spending during the electioneering campaign.

Speaking to Citi Business News, Dr. Nyarko said the government may have to do more to be able to achieve the inflation target of 8 percent plus or minus two.

“It may be possible it may not. It depends on the policies that government puts in place and if we put in polices that are inflationary we will not be able to realize the target that we have set”, she explained.

She, however stated that if government pursue policies that are non- inflationary, then government could achieve the target in 2016.

She stated that the service does not predict but measures the variables, hence cannot make a definite forecast on the outcome of inflation in the future.

By: Norvan Acquah-Hayford/citibusinessnews.com/Ghana