The Ghana Statistical Service (GSS) has revealed that, inflation has shot up by 3.3% leading to 37.2% for the month of September 2022.
This is quite unsatisfactory because low, stable and predictable inflation is good for the economy, living conditions and finances of the citizens. Low inflation helps businesses to grow as the owners/management are able to plan what their costs of operations may be on a monthly or yearly basis.
However, it is important to point out that, the 37.2% Inflation for the month of September 2022 is NOT the worse Inflation rate ever. The worst Inflation rate ever recorded in Ghana was in 1983 under the reigns of PNDC under the Rawlings administration.
The worse inflation rates recorded by NDC Government which are exceedingly higher than the current Inflation rate of 37.2% are as follows:
1. 122.87% in 1983
2. 59.46% in 1995
3. 46.56% in 1996
4. 40.24% in 2000
5. 39.82% in 1987
6. 39. 67% in 1984
When it comes to Inflation records in Ghana, NDC has done worst than the NPP.
Globally, countries which depend on the partnership with Europe and the Western World are really struggling with inflationary rates.
The Inflation rate of Turkey for the month of September 2022 is 83.45%, and the trade deficit of Turkey too has jumped to 160%. Not to even waste time on mentioning the inflation records of Argentina, Venezuela, Sri Lanka, Cuba etc.
The inflation rate of the United States of America has jumped to an unprecedented record of 14.5% with the UK to experiencing its 40-year high inflation rate of 9.9%. Previously the inflation rates for UK and USA were within the range of 1-2%.
The measures implemented by Akufo-Addo's Government have resulted in a falling rate of inflation for Food and Non-alcoholic beverages which recorded a 37.8%, which is far below the 122% claimed by the World Bank.
The Bank of Ghana recently adjusted the policy rate upwards to 24.5% to help fight inflation. The positive effect of this move by the Bank of Ghana may reflect in the October 2022 Inflation.
Let me state that, even though the policy rate of 24.5% is on a high level, it is still better than Mahama's policy rate of 26% and 25.5% for 2015 and 2016 respectively.
"Trade balance is the value of exported goods minus the value of imported goods". Despite the inflation rate of 37.2%, Akufo-Addo’s Government is doing very well as far as the trade balance of Ghana is concerned. Ghana recorded $1.43billion trade surplus in the first half of the year 2022 according to the Summary of Economic & Financial Data of the Bank of Ghana.
With the several measures and interventions implemented by the Government, it is expected that the inflation may fall before 31st December 2022.
Source: Razak Kojo Opoku
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So oga writer, is it right to compare today's inflation rate to almost 40 years ago? I am lost here. Can we just talk about the economy's performance without comparing it to the previous administration?
THAT IS TRUE, TRUE THE NDC IS WORSE PARTY IN THE WHOLE WIDE WORLD ESPECIALLLY THEIR LEADER ***barred word*** LOOOOOOOOOSER NEVER AGAIN MAHAMA ***barred word***.
Kudos on the fact based write-up. If only most of the discourse on the current state of the economy were situated in the right perspective like you just did, it wouldn't necessarily alleviate the current hardships but it will surely help allay fears and dismiss the narrative that the current situation is the worst we have ever seen. Yes, it is far from ideal but it should be reassuring that both the BOG and GOG are putting in place measures to remedy the current situation.