Ghanaians are yet to feel the impact of inflation slowdown, exchange rate

File photo of Makola Market [Image Credit: JAFEPX]

An economist, Professor Patrick Asuming, has noted that despite positive signs of recovery in Ghana’s economic indicators, many Ghanaians are yet to feel the impact in their daily lives.

According to him, although the exchange rate and inflation have eased in recent months, the prices of goods and services have remained largely unchanged.

He lamented the high cost of living, pointing out that prices continue to rise despite a slowdown in the rate of inflation.

“We still have to understand that prices are climbing. Yes, the rate of increase has slowed, from around 18% to about 10%, but prices haven’t declined. Things are still getting more expensive. We shouldn’t expect that the decline in inflation means that prices are coming down anytime soon,” he was quoted as saying by myjoyonline.com.

Professsor Asuming also noted that tariffs and production costs have increased, explaining that while the monetary side of the economy is showing signs of recovery, wages have remained stagnant.

“These tariffs keep going up, and it’s a big element of the cost. Wages are not increasing either, and the domestic cost of production is rising. It seems to me that the financial and monetary side of the economy has performed better, but the real sector is still lagging behind,” he said.

He further acknowledged that despite improvements in Treasury bill rates, it does not necessarily mean the economy is healthy.

“The government has been very quick to try and put its finances in order. We’ve done well on the financial side, but that doesn’t mean the broader economy is healthy,” he added.

SSD/MA