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Economist blames Ghana’s high inflation rate on borrowing to service debt

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An Economist, Dr Owusu Sarkodie has blamed Ghana’s rising inflation rate on borrowing to service debt.

He said foreign currencies are being used in servicing Ghana’s debt therefore, inflation will keep rising.

“The amount of monies we have borrowed to service our debt that is why we have high inflation rate,” he told Dzifa Bampoh on an Accra based radio station.

He added “We use foreign currency to service our debt. We have created the mess so therefore we need to deal with it.”

Dr Sarkodie further said “We need to slow down on the borrowing or else things may get worst if we continue.”

Inflation rate in May 2022 recorded 27.6% from the 23.6% recorded in April 2022, the Ghana Statistical Service (GSS) announced on Wednesday June 8.

The Government Statistician, Professor Kobina Annim, explained at a press conference in Accra on Wednesday June 8 that the rate of inflations for Transport (39.0%), Household Equipment and Maintenance (33.8%), Housing, Water, Gas and Electricity(32.3%) and Food and Non-Alcoholic Beverages (30.1.6%) were higher than the national average (27.6%).

Regarding food inflation five sub-classes record inflation rates higher than the overall food inflation (30.1%) in May.

The inflation for imported goods was 28.2%, which is higher than the 24.7% recorded for April 2022, while the inflation for locally produced items was 27.3%, up from the 23.0% recorded in April 2022.

The inflation for imported goods was 28.2%, which is higher than the 24.7% recorded for April 2022.

The GSS further indicated that inflation for locally produced items was 27.3%, up from the 23.0% recorded in April 2022.

Focusing on year-on-year food inflation for May 2022, the GSS five sub-classes record inflation rates higher than the overall food inflation (30.1%).

This was led by Oils and Fats (52.0%) followed by Water (42.4%).

On a month-on-month basis, three sub-classes recorded inflation rates higher than the overall inflation (4.0%). This was led by Oil and Fats (6.5%) followed by Vegetables (5.4%) and Cereal Products (5.3%).

The national rate recorded 27.6% from the 23.6% recorded in April 2022.

The rate of inflations for Transport (39.0%), Household Equipment and Maintenance (33.8%), Housing, Water, Gas and Electricity(32.3%) and Food and Non-Alcoholic Beverages (30.1.6%) were higher than the national average (27.6%).

Regarding food inflation five sub-classes record inflation rates higher than the overall food inflation (30.1%) in May.

The inflation for imported goods was 28.2%, which is higher than the 24.7% recorded for April 2022, while the inflation for locally produced items was 27.3%, up from the 23.0% recorded in April 2022

About Osman Nuhu

I'm a certified truth-teller/blogger/ Student of University of Ghana, C.E.O of Ghanaontheglobe.com. For Promos/Ads/Booking for Events contact: 0548555750/ osmannuhukasoa@gmail.com

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