The government has been entreated to work closely with the various stakeholders to bring down food inflation.
According to a Senior Lecturer at the Department of Economics of the University of Ghana, Professor Eric Osei-Assibey, this was a smart way of reducing inflation.
Recent data from the Ghana Statistical Service showed that food inflation went up to 61 per cent in January 2023, from 59.7 per cent in December 2022.
Professor Osei-Assibey said, “This requires the adoption of such policy to bring the rate of food inflation down”.
Speaking at the launch of the
American Chamber of Commerce-Ghana 2023 Economic Outlook Report, he said the government should be deliberate in its attempt to support the agriculture value chain.
“Looking at the current hike in food inflation, it has to do with our inability to produce enough for what we consume which is serious. So I am of the view that if we are able to come out of this crisis, we need to be deliberate on our approach for good policies to support farming on a large scale,” he stated He called for investments in the sector and requested banks to review a number of the sector’s support initiatives.
He again urged the government to step up efforts to raise domestic tax collection.
“When we have banks supporting agriculture, I think it will help to ensure a robust economy. We need investment at this point in the agriculture value chain. There is also the need for the government to rake in more revenue to support various sectors of the economy,” he added.
The American Chamber of Commerce Ghana 2023 Economic Outlook report provided insight into government’s tax provisions, fiscal and monetary development, debt sustainability, and key macroeconomic performance and targets.