A professor of Finance at the University of Ghana (UG), Godfred Bokpin says the government has not turned the corner.
According to the lecturer, a reduction in inflation does not guarantee a corresponding decrease in prices, as the economy initially started at a high level.
Speaking on Joy FM Super Morning Show, he pointed out that the government cannot assert an overall improvement in the economy, stating that there is still a significant disparity in the prices of goods across different regions.
He highlighted that various factors contribute to a decrease in inflation, such as lower demand for goods.
“If you take food inflation, we can say the average is 34% but food inflation in the Eastern Region is more than 50%. In the Northern Region is more than 50%. Again that same inflation varies from region to region so the average we are using but within that same economy, we see variation but somebody in the eastern region could not be saying I have turned the economy because food inflation is 53%. Just a couple of months ago, food inflation in Northern East is more than 75% in that same economy,” he said on Tuesday, January 2.
Prof Bokpin emphasised that price movements are not uniform everywhere due to the diverse nature of goods people purchase, resulting in regional variations in inflation rates.
He suggested that instead of a singular plan applicable nationwide, the government should formulate distinct strategies for different areas.
He argued that this tailored approach would enable the government to address specific issues influencing prices in each region.
The professor of Finance at UG cited an instance where if one region experiences high prices for particular goods while another does not, a targeted plan can focus on resolving those specific challenges in each location.
“We need to recognize that beyond general policies we need targeted policies with a certain intention to drive some outcome beyond just general policy prescription. It is the intention which is important," he said.
Credit: Isaac Kafui Nyanyovor