The New Patriotic Party’s Deputy Communications Director, John Boadu has warned that the current inflation trend does not reflect the true economic indices on the ground.
Speaking on Multi TV’s political talk show, Caucus, Mr. Boadu said the government is concentrating on reducing inflation without considering what goes into the producer price index.
“In analysing what inflation is, one must be very careful.
"We are now being told that inflation is around a single digit, it is good; but what goes into the single digit? We’ve rebased our economy; we’ve added other commodities that were not part of the basket; Afforestation and ICT. Afforestation prices and values do not change very rapidly, so you have it being constant over a period”, he said.
He added that “ICT prices and consumption are even falling, that is why you will see a big difference between the producer price index and the consumer price index...Producer price index as we speak now is around 26 per cent and what goes into producer price index is the cost of electricity, water, cost of raw materials...What this simply means is that, prices of goods will keep going higher”.
In an emotional analysis lasting a little over twenty minutes, he described Ghana’s economy as pathetic: “It is becoming very dangerous, now you realise that the Service Sector has taken over the Agric Sector as the major contributor to our GDP which is dangerous. Look at the players in the Service Sector, what it means is that we are now buying and selling so many of our resources in terms of GDP may not come to us.”
According to him, the Agric Sector is now playing third fiddle in terms of its contribution to the country’s GDP, describing the situation as a worrying signal.
He extolled achievements of the NPP which he said “took over an economy that was less than 4 billion dollars in 2000 with a GDP growth of about 3.7 per cent, an inflation figure running over 40.5 per cent with almost about 300 of our industries sold. However, within eight years, we turned things around” leaving an economy worth “32 billion dollars”.
He traced the NPP’s economic success to ex-President J.A. Kufuor’s decision to go HIPIC, rebutting the NDC’s claim that HIPC benefits had run out.
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