Government targets 8 per cent inflation despite it nearing 30%
The government has not given up in its attempts to stabilize the inflation rate as it has set an 8% target, according to Deputy Finance Minister, John Kumah Deputy, though inflation continues to soar, reaching 27.6 per cent in May, amid a cost-of-living crisis.
Mr Kumah during an interview on Accra-based Citi FM, said, “where we are is way overboard, and we are not happy with it.”
“But we strongly believe that we will quickly come back within the target of 8 per cent,” he added.
Food inflation rose again to a record 30.1 per cent, compared to the 26.6 per cent recorded in April.
Mr Kumah assured the public that this inflation was not a result of a shortage on the supply side of food.
“The reason why the costs have gone up is the price of transport, and there have been consistent increments at fuel prices at the pump.”
He stated that the government was working to remedy these challenges.
“In fact, the mid-year budget is coming. We are going to take several initiatives to address some of these important inflation concerns in our country.”
Economic journalist, Toma Emihere expressed his view on the situation and said profiteering along the food chain was contributing to the high inflation rate in the country.
“We have an inefficient supply chain for food,” he explained.
“By the time it gets to consumer markets in southern markets and the major urban centres, it is more than twice the farm gate price.”
He suggested that the government uses fiscal incentives to tackle issues in a holistic manner because “the supply chain is too fragmented.”
As an example, he said, there could be one company that buys from the farm gate and delivers to retailers in Accra.
