Single digit inflation is still attainable-Expert

pulse-ghana admin

May 29, 2017 5:36 PM

Lower production cost would result in single digit inflation

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Renowned Economist Adu Owusu Sarkodie says the Bank of Ghana's medium term inflation target is attainable should critical challenges facing the service industry be tackled.

According to him, persistent production constraints related to issues of post harvest losses which cause food inflation pose a major challenge to meeting the target for the short term.

“If the supply side of inflation is addressed together with the demand side which mainly borders on money supply, then I am sure the single digit inflation would be achieved hopefully by the end of the year”.

Governor of the Bank of Ghana, Dr. Ernest Addison also said he is confident of the decline in inflation in both the financial and business sector.

"The forecast horizon for inflation remains unchanged and inflation is expected to trend downwards towards the medium-term target of 8±2 percent in 2018.” he said.

However, inflation increased from 13% in April 2017 from 12.8 percent in March 2017 although the projections say otherwise.

But Adu Owusu Sarkodie believes the trend is likely to change if constraints in production are resolved.

pulse-ghana admin