Former Finance Minister, Seth Terkper has called on government to take a comprehensive look at the economy to resolve the high inflation rate phenomena being experienced and its knock-on effect on other parts of Ghanaian life.
According to Mr. Terkper, the high rate of inflation is connected and tied to different aspects of the economy
Data from the Ghana Statistical Service shows that the continuous increase in transport and food prices among others, across the country, has pushed the national year-on-year inflation for April 2022 to 23.6 %, which is over 13 percentage points higher than the upper band of government’s inflation target for 2022, which is 10 %.
Responding to a question by Citi Business News in a zoom interaction on the way forward for government in dealing with the rate of inflation, Former Finance Minister Seth Terkper noted a comprehensive look at the economy is needed now as upcoming developments in public sector worker remuneration, for example, could lead to further hikes in inflation down the line.
“I hope we all don’t see this inflation issue as an isolated event. It is time for us to take a comprehensive look at the economy. We also know that we could be facing serious cost-push inflation when the government eventually resolves the wage issues”.
Mr. Terkper further added that unless government can create the fiscal space to solve some of the challenges in the agric sector then inflationary pressures from the sector will impact national inflation.
“Similar to the utility sector where subsidies are not forthcoming, we have a situation in agriculture. So unless we can create the fiscal space and I don’t see where it will come from immediately, the agriculture situation could worsen, which will negatively impact national inflation.”