July 1, 2022

The government is not surprised by the rise in inflation in the country – Deputy Minister of Finance

The Deputy Minister of Finance says the government is not surprised by the rise in inflation in the country.

Dr. John Kumah said the increase was part of the rebound process from the effects of the COVID-19 pandemic.

This, he said, is not an exception for the country, but most countries in the world also face similar challenges.

According to him, the government expected inflation for the year to be around 10%, but events beyond its control caused it to do so.

“Yesterday another announcement was made that the United States was doing 8.5%, the highest in 41 years. I think all of these signals indicate that the economies of the world are actually bouncing back from Covid, and that’s a necessary process to get through the tough downturn that we’ve all been through and so for us, if you look at the projection for the year, we hadn’t expected to reach this far.

“It was plus or minus 8% so we were hoping to hover around 10% or thereabouts but unfortunately it went up to 23% but we’re not surprised as that’s part of the rebound process that almost all economies have to go through to get better.

On the same difficulties, the Minister of Finance Ken Ofori-Atta also attributed the rise in inflation to factors beyond the government’s control.

Minister of Finance, Ken Ofori-Atta

According to him, 41 African countries are currently exposed to the same crisis that Ghana is facing. These crises that he mentioned are “the rise in food prices, the rise in energy prices, the tightening of financial conditions”.

Conditions, he said, the continent’s finance ministers call them the “dreaded three Fs”.

“Today, 41 African economies are critically exposed to at least one of three simultaneous crises, rising food prices, rising energy prices, tighter financial conditions. Finance ministers now call it the dreaded three Fs; food, fuel and financial terms.

“It’s just a wave across Africa, and food prices are easily higher by around 34%, crude oil prices by around 60% and global inflation has gone up; we saw our numbers yesterday jump to 23.6%, a lot of it being imported inflation.

He spoke on JoyNews’ AM show on Thursday, May 13.

About April Inflation

the Ghana Statistical Service (GSS) announced on Wednesday May 11 that the national year-on-year inflation rate was 23.6% in April 2022, 4.2 percentage points higher than the 19.4% recorded in March 2022.

This is the highest since January 2004.

According to the ESG, four divisions – Transportation (33.5%); Household equipment and routine maintenance (28.5%); Food and non-alcoholic beverages (25.6%), and housing, water, electricity, gas and other fuels (25.0%) recorded inflation rates above the national average 23.6%, with transport registering the highest inflation.

Monthly national inflation from March 2022 to April 2022 was 5.1%.

While inflation for food and non-alcoholic beverages was 26.6%, non-food inflation stood at 21.3%.

April 2022 food inflation (26.6%) is higher than both March 2022 food inflation (22.4%) and the average for the previous 12 months (13.5%). The contribution of food inflation to headline inflation, however, fell from 51.4% in March 2022 to 50.0% in April 2022.

All 15 food subclasses recorded positive month-on-month inflation, with fruit and vegetable juices recording the highest (15.3%).

For Non-Food inflation, inflation over one year, on average, increased again in April 2022 compared to March 2022 (from 17.0% to 21.3%). Only one of the 12 non-food

The divisions had a 12-month moving average above year-over-year inflation for April 2022.

In addition, inflation for imported goods was 24.7% higher than the 17.3% recorded in March 2022, while inflation for locally produced items was 23.0%, up from 20.0 % recorded in March 2022. This is the first time in 29 months that inflation of imported items has exceeded domestic inflation.

Government statistician, Professor Samuel Kobina Anim, has called on policy makers to address the rising prices of goods and services in the country.

Upper East records lowest inflation rate of 18.4%

Meanwhile, the Upper East region recorded the lowest inflation rate of 18.4%. However, the Center region recorded the highest inflation rate of 26.7%.

Greater Accra recorded an inflation rate of 25.1%, while Ashanti Region recorded an inflation rate of 21.7%.

For the region with the lowest food inflation, the Upper East reached 18.1%, while the Upper West recorded the highest inflation rate of 38.5%.