Inflation Rates Show Economy Is Rebounding, Gov’t Is Not Surprised – John Kumah
Deputy Finance Minister, Dr. John Kumah, has stated that current inflation trends are a depiction of the country’s rebound from the devastating COVID-19 pandemic.
He added that the current inflation of 23.6% even though not surprising is not what government anticipated.
The Finance Minister whiles speaking on Accra-based FM also noted that high inflation rates are being experienced around the world, not only in Ghana.
“Yesterday, another announcement came through that the USA is doing 8.5%, the highest in 41 years. I think all these are signals that the economies of the world are actually rebounding out of COVID, and it’s a necessary process to go through from the difficult downturn that we all experienced and so for us, if you look at the projection for the year, we didn’t anticipate to reach thus far.”
“It was plus or minus 8% so we were hoping to hover around 10% or just about that but unfortunately it has gone as high as 23% but we are not surprised because it is part of the rebounding process that almost every economy has to go through to get better.”
Finance Minister Ken Ofori-Atta while addressing the press noted that the rising inflation is being caused by factors beyond the government’s control.
According to him, just like Ghana, 41 African countries are currently exposed to the same crisis.
The crises was listed as “rising food prices, rising energy prices, tightening financial conditions”.
“Today, 41 African economies are severely exposed to, at least, one of three concurrent crises, rising food prices, rising energy prices, tightening financial conditions Finance Ministers now call it the dreaded three Fs; food, fuel, and financial conditions.”
“That is just a ripple through in all Africa, and food prices easily about 34 percent higher, crude oil prices some 60 percent higher, and global inflation has risen; we saw our numbers yesterday moved to 23.6 percent, a good chunk of it being imported inflation.”