Economist Dr Ebo Turkson has downplayed fears of higher than normal inflation rates this year, as the country prepares for a major election at the end of 2020.
According to him, the Central Bank is well placed to introduce the needed measures to keep inflation within the target band of eight plus or minus two per cent for this year.
The year-on-year inflation rate for last month which was 7.9 per cent, surpassed the government’s end of year target for 2019 of eight per cent.
Commenting on the trajectory of inflation for the rest of 2020, Dr Ebo Turkson urged the government to target inflation rates lower than the current rate of 7.9 per cent.
“It’s about time Ghana begins to look at its inflation targeting. We need to reduce our inflation target even lower. We know how election years lead to the government’s overrunning everything, leading to higher than normal inflation but don’t forget that the Monetary Policy Committee is independent so if there are any potential inflation coming from any government overspending they should be able to use their policy rate to contain it,” he said.
December inflation slows to beat government’s 2019 end-year target
Inflation for the month of December 2019, declined to 7.9 per cent beating the end-year target, the Finance Minister announced in the mid-year budget.
Mr Ofori-Atta had set the government’s sights on achieving an end-year inflation rate of eight per cent.
But inflation slowed from 8.2 per cent in November 2019, to close the year within the government’s benchmark.
The government statistician, Kobina Annim, explained that the December inflation was driven by a relatively lower year-on-year inflation of food and non-alcoholic prices which measured at 7.2 per cent.
The development means that on average, the general prices of goods and services over the 12 month period remained within the government’s projections.
Greater Accra Region had the highest inflation rate at 12 per cent, while inflation remained lowest in the Ashanti Region with five per cent year-on-year inflation. Citi Business news
– Dr Ebo Turkson