President Nana Addo Dankwa Akufo-Addo has observed that the measures that were introduced to deal with the economic challenges, especially the partnership between the Bank of Ghana (BoG) and the International Monetary Fund (IMF), are yeilding results.
For instance, he said in the area of inflation, it is clear that the rate is being contained.
“There is clear evidence that inflation is being contained. From 54 per cent in December, 2022 to 26.4 per cent in November, 2023. We are also witnessing sustained stability of the exchange rate.
“The effective partnership between the BoG and the IMF under the terms of the government’s programme with the fund is yielding the right results.
“I am also encouraged by the many corporate governance measures put in place by the BoG to mitigate future bank failures and ensure that we have a strong banking sector to drive the agenda of transformation,” he said during the 2023 Bank of Ghana End of Year Cocktail on Thursday, December 14.
26.4% inflation: We are vindicated that the 54.1% recorded in 2022 was just a blip – Addison
The inflation rate dropped to 26.4% in November 2023 from 35.2% recorded in October 2023, the Ghana Statistical Service (GSS) announced. According to the GSS, the major factor that contributed to the drop was food inflation.
Food inflation dropped by 12.6% to 32.2% in November, 2023. The month-on-month rate of food inflation was 0.8%. For non-food inflation, it also eased to 21.7%, as compared with 27.7% in October 2023. The month-on-month rate of non-food inflation stood at 2.2%. Five divisions recorded inflation rates higher than the national average.
They are Alcoholic Beverages, Tobacco and Narcotics (39.0%); Personal Care, Social Protection and Miscellaneous Goods and Services (35.4%); Food and Non-Alcoholic Beverages (32.2%); Furnishings, Household Equipment and Routine Household Maintenance (32.2%) and Restaurants and Accommodation Services (27.1%).
Also commenting don’t his, the Governor of the Bank of Ghana Dr Ernest Addison said that the central bank has been vindicated by the drastic drop in the rate.
Dr Addison said that through effective collaboration with the Ministry of Finance, the Bank of Ghana has formulated monetary policies to keep the economy steady.
Speaking at the same event where the President spoke, Dr Addison said “The policy mix under the IMF-supported PC-PEG programme is gradually yielding positive results. From the peak of 54.1 percent in December 2022, headline inflation has declined to 35.2 percent in October 2023 and today, it has fallen to 26.4%.
“I kept on reminding people that inflation was at 12.7% in December 2021 and what we saw in 2022 should not be used to judge us. As you are aware there has been considerable noise from our detractors who have celebrated the high inflation recorded. Today, we are vindicated that inflation in 2022 was just a blip and we are quickly returning to where we were before the crisis.”