Inflation has a significant impact on the economy and the citizens. It measures the general increase in prices of goods and services over a period of time, and Ghana is currently facing an inflation rate of 54 percent.
The Governor of the Bank of Ghana, Dr. Ernest Addison, spoke about the measures being taken to address this issue.
He predicts that the inflation rate will decrease in the coming months, which would result in a change in monetary policy rates. This is good news for the economy and the citizens.
However, economist Professor Godfred Bokpin believes that the government lacks credibility in controlling the persistent increase in the inflation rate.
Despite several policy directives, the economy’s managers have failed to significantly improve the general price levels, leading to a loss of trust in the government’s policy prescriptions.
A persistent increase in the inflation rate can decrease the purchasing power of citizens, causing a decrease in demand for goods and services, and slowing down economic growth.
In conclusion, it’s crucial for the government to effectively tackle the inflation rate to restore citizens’ confidence in policy prescriptions and maintain a stable inflation rate, which would contribute to the overall growth and stability of the economy.