Ghana Is Experiencing Cost-Push Inflation, Rendering The BoGs Continuous Policy Rate Increases Ineffective- Economist
Ghanaian chartered economist Emmanuel Darkwah claims that the reason we continue to have high inflation rates is that we have more cost-push inflation and less demand-pull inflation.
He noted that the demand-pull effect indicates that the central bank believes there is excess liquidity in the market, and that the excess money is influencing the prices of goods.
The cost-push, on the other hand, explains that the inputs used in producing goods and services in Ghana are increasing, which is why the cost of goods and services is increasing.
In an interview with Kwabena Agyapong on Rainbow Radio 87.5Fm’s Frontline, he stated that the rate of depreciation against the major currencies and external pressures are affecting our ability to have external sources of funding to support our budget.
Mr. Amoah Darkwah stated that our inflation rate is the key indicator that could influence an increase in the monetary policy rate in Ghana, and it is critical that we disaggregate the main challenges.
Ghana Is Experiencing Cost-Push Inflation, Rendering The BoGs Continuous Policy Rate Increases Ineffective- Economist
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