Economist Dr. Ebo Turkson has stated that the constant reduction in inflation rates is a positive sign of a stronger economy.
Dr. Turkson maintains that inflation may trend down if government keeps key macroeconomic indicators stable.
He argued that the country has some witnessed some relative economic stability which have been realized due to some level of fiscal discipline.
He believes this trend could continue at least until the end of the first quarter of 2019.
“I think the some of the macro indicators are looking good and if the government keeps its spending in check it will continue”, he said.
Inflation drops for January
Inflation came down to 9 percent from 9.4 percent recorded in December, it is the lowest in 5 years.
The inflation figure means that there was a 9-percentage increase in the general price level of goods and services that households consumed in January 2019, when compared to prices of goods and services in January last year.
At the regional level four regions (Upper West, Brong Ahafo, Western and Ashanti) recorded inflation rates above the national average of 9.0 percent.
Upper West region recorded the highest year-on-year inflation rate of 10.8%, followed by Brong Ahafo region (9.9%), while the Upper East region recorded the lowest year-on-year inflation rate (7.7%) in January 2019.
At the maiden announcement of the Monetary Policy Rate for this year, the governor of the Bank of Ghana, Dr. Ernest Addison announced a 100 basis point reduction to 16 percent.
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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana.