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Ghana June inflation rises to 10%
Ghana’s Inflation for the month of June rose to 10 percent, compared to the 9.8 per cent recorded in May this year. Collins Appiah, Economic Advisor at Services Integrity Savings and Loans joins CNBC Africa from Ghana to discuss the economic events that may have influenced the recent inflation figures.
Fri, 13 Jul 2018 11:27:31 GMT
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AI Generated Summary
- The inflation rate in Ghana climbed to 10% in June, driven by price increases in non-food consumer items and imported goods like food and clothing.
- Transportation costs also contributed to the inflationary trend, impacting daily expenses for consumers.
- Investors are monitoring the situation closely, adjusting their strategies to accommodate higher returns amidst rising inflation and potential economic risks.
Ghana's inflation rate for the month of June rose to 10 percent, marking an increase from the 9.8 percent recorded in May. The spike in inflation has raised concerns about the economic landscape and its impact on various sectors. Collins Appiah, an Economic Advisor at Services Integrity Savings and Loans, shed light on the factors influencing this inflationary trend and its potential effects on investments in the country.
According to Appiah, the uptick in inflation can be attributed to a variety of factors, with a significant contribution coming from the prices of non-food consumer items. While there were fluctuations in the prices of food items, it was the non-consumable goods that predominantly drove the overall inflation rate. Imported goods, including food and clothing, experienced price hikes, adding to the inflationary pressures. Additionally, transportation costs also played a role in the inflationary trend, with fluctuating prices affecting daily expenses for consumers.
The economic advisor emphasized the impact of a weakened local currency on import prices, highlighting the interconnectedness of global economic conditions and Ghana's domestic inflation rate. As the economy grapples with external forces influencing price levels, investors are closely monitoring the situation to gauge the potential risks and returns associated with investing in Ghana.
Investors are likely to adjust their strategies in response to the inflationary pressures, seeking higher returns to offset the rising costs of doing business. Appiah noted that inflation is a key factor considered by investors when evaluating the economic environment in Ghana. With inflation projected to remain elevated, the government faces challenges in managing borrowing costs and maintaining economic stability.
Appiah expressed confidence in the government's ability to implement policies to address the inflationary trend and mitigate its impact on investments. He referenced the budget targets for the year, which aim to keep inflation within a manageable range of 8 to 10 percent. By employing strategic policy measures, authorities aim to stabilize the economy and reassure investors of Ghana's commitment to financial stability.
As Ghana navigates the challenges posed by rising inflation, stakeholders across various sectors are closely monitoring the evolving economic landscape. The government's response to inflationary pressures will be critical in shaping investor confidence and sustaining economic growth in the country.
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