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, stable inflation helps businesses to grow as the owners/management are able to plan what their costs of operations may be on monthly or yearly basis.
2022 inflation cases
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 during the PNDC administration under Jerry Rawlings.
The worse inflation rates recorded by NDC government which are exceedingly higher than the current Inflation rate of 37.2% are as follows:
- 122.87% in 1983
- 59.46% in 1995
- 46.56% in 1996
- 40.24% in 2000
- 39.82% in 1987
- 39. 67% in 1984
When it comes to inflation records in Ghana, NDC has done worse than the NPP.
Globally, countries which depend on the partnership with Europe and the rear of 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%.
I don’t have to even waste time on mentioning the inflation records of Argentina, Venezuela, Sri Lanka, Cuba etc.
The inflation rate of United States of America has jumped to an unprecedented record of 14.5%, with UK too 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 the Akufo-Addo government have resulted in the falling rate of inflation for food and non-alcoholic beverages, which recorded 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 Bank of Ghana may reflect in the October’s inflation.
Let me state that even though the policy rate of 24.5% is on the 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%, the Akufo-Addo 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 being implemented by the government, it is expected that inflation may fall before December 31, 2022.