Achieving Single Digit Inflation Shouldn’t Be Our Worry – CUCG Lecturer
A lecturer at the Catholic University College of Ghana, Fiapre, faculty of economics and Business Administration, Mr Bright Nyarko has stated that, as a country, our main focus should not be on attaining a single digit .
Mr Nyarko said, government should rather be interested in creating an expansionary environment by increasing output and also building a very strong G.D.P instead of being obsessed with achieving a single digit inflation.
The lecturer was commenting on the latest inflation figure released by the Ghana statistical service for November 2014 which indicates that the level of inflation which is now 17 percent from 16.9 percent in October.
According to him, high inflation rate,depending on the figure is not always incompatible with growth. When inflation hits around 19 to 20 percent, its effects on the economy is not as bad as when it reaches for instance 40 percent and above, where it could have serious implication on the growth of the economy.
He advised the statistical service that in targeting inflation, it should take into account the drivers of inflation by knowing which of the categories of goods and services contribute significantly to high inflation and also reducing the level of importation of goods into the country.