• About
  • Advertise
  • Privacy Policy
  • Contact
Saturday, January 28, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Economist Predicts Higher Inflation For The Month Of August  

September 12, 2022
Stephen KotochiebyStephen Kotochie
in Economy, One Top Story
0
Economist Predicts Higher Inflation For The Month Of August

Dr. Isaac Doku, an Economist and Lecturer at the University of Education, Winneba, has predicted that headline inflation for the month of August will accelerate further to the twelve consecutive month, going above the current rate of 31.7 percent in July 2022.

According to him, cost of production continues to rise and remains a major driver of inflation in the country.  He noted that fuel prices are also rising and feeding into production costs.

The economist noted that the recent monetary measures rolled out by the Bank of Ghana in an emergency meeting in August has not made any significant impacts on reducing prices. He indicated that the current inflation that is being experienced in Ghana is cost pushed “So monetary policy in the country cannot deal with the issue”.

RelatedPosts

IEA Urges Government To Moderate Expenditures To Create Fiscal Space For The Economy

Africa Prosperity Dialogues 2023: Africa’s Challenges are Africa’s Opportunities- Wamkele Mene

DDEP: Government To Hold Its Final Consultation With Stakeholders

Speaking in an interview with The Vaultz News, Dr. Doku noted that cement prices for instance, jumped twice the previous month while fuel prices that stabilized for two windows began to go up again.

Doku
Dr. Isaac Doku

“Look at cement prices now, how can monetary policy affect cement prices? It has no bearing. It will rather even increase cost of production because it means that companies are going to borrow at a very high interest rates and that’s going to be added to the cost of production.

“When they borrow at our interest rate and use for their investment, they have to shift the burden to consumers. So at the end of the day, inflation will continue to rise unless the monetary policy is stabilized to reduce the cost of production of businesses amid the already high prices of raw materials that we are experiencing in the country”.

Dr. Isaac Doku

Dr. Doku emphasized that “It is not a trade issue because we have a current account balance surplus”, but “It’s all about cost of production because fuel prices are rising in the world market and then the trickle-down effect is being felt here in Ghana”.

He warned that until government stabilizes fuel prices in the country, there is no end in sight.

Removal of benchmark values

Apart from that, he underscored that other countries that Ghana imports goods from are also experiencing hike in prices “because raw materials that we buy from outside have started experiencing rising prices”.

“Take note, the benchmark values government took off to raise prices of imported products is also a contributory factor.  So it’s not because people have money and so when we raise the policy rate, people will want to save with banks and draw money out of the system, NO. Even if it will have any effects, very minimal”.

Dr. Isaac Doku

To boost the supply of foreign exchange to the economy, the Bank of Ghana disclosed that it is working collaboratively with the mining firms, international oil companies, and their bankers to purchase all foreign exchange arising from the voluntary repatriation of export proceeds from mining, and oil and gas companies. This, according to BoG, will strengthen the central bank’s foreign exchange auctions.

After the policy actions in August, the local currency showed some stability but Dr. Doku noted that it was not as a result of BoG’s policies but because some money came in from the Exim bank loan to support the ailing economy. “We are expecting the cocoa syndicated loan to also come soon”, he said, adding that this will help increase reserves as the BoG still failed to meet all its forex bids last week.

READ ALSO: Stance Taken By CETAG Is A Strike In Disguise- PRINCOF

Tags: AugustBank of GhanaCOVID-19ghanainflationUniversity of Education

Related Posts

IEA Urges Government To Moderate Expenditures To Create Fiscal Space For The Economy
Economy

IEA Urges Government To Moderate Expenditures To Create Fiscal Space For The Economy

January 26, 2023
Africa Prosperity Dialogues 2023: Africa’s Challenges are Africa’s Opportunities- Wamkele Mene
One Top Story

Africa Prosperity Dialogues 2023: Africa’s Challenges are Africa’s Opportunities- Wamkele Mene

January 26, 2023
DDEP: Government To Hold Its Final Consultation With Stakeholders
Economy

DDEP: Government To Hold Its Final Consultation With Stakeholders

January 26, 2023
Debt Cancellation: Ghana’s International Creditors Request for Full Debt Composition
Economy

Debt Cancellation: Ghana’s International Creditors Request for Full Debt Composition

January 26, 2023
DDEP: We Don’t Tax Companies Enough; Don’t Tax Poor People Whose Incomes Are So Tiny – Dr. Kwakye
Economy

DDEP: We Don’t Tax Companies Enough; Don’t Tax Poor People Whose Incomes Are So Tiny – Dr. Kwakye

January 26, 2023
IMF Advises The International Community To Be Optimistic About The Possibility Of An Economic Recovery
Economy

IMF Advises The International Community To Be Optimistic About The Possibility Of An Economic Recovery

January 25, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Stance Taken By CETAG Is A Strike In Disguise- PRINCOF

Next Post

Analyst Anticipates Mix Session to Start off the Week on Ghana Stock Exchange

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
Purchase Domain Names With The “.gh” Extension To Generate Revenue And Expand In The Local Internet Industry – GDNR
Business

Purchase Domain Names With The “.gh” Extension To Generate Revenue And Expand In The Local Internet Industry – GDNR

by Priscilla Dziedzorm FiakpornuJanuary 28, 2023
Telecel to Become the Second Player After MTN Ghana to List on GSE After Takeover of Vodafone Ghana
Securities/Markets

Telecel to Become the Second Player After MTN Ghana to List on GSE After Takeover of Vodafone Ghana

by Stephen M.CJanuary 28, 2023
Mahama To deliver A lecture On ‘Africa’s Strategic Priorities’ in UK Today
General News

African leaders Beyond The Age of 80 Have No Business Clinging To Power – Mahama

by Emmanuel SarpongJanuary 28, 2023
Mali Defends Ties With Russia
Africa

Mali Defends Ties With Russia

by Comfort AmpomaaJanuary 28, 2023
Vanguard Awards Night Of Glamour, Glitz, And Excitement
Entertainment

Vanguard Awards Night Of Glamour, Glitz, And Excitement

by Esther Korantemaa OffeiJanuary 28, 2023
Muslims Will Support Bawumia As They’re Not Welcome In NDC – Anyidoho
General News

Muslims Will Support Bawumia As They’re Not Welcome In NDC – Anyidoho

by Samuel Yeboah OtibuJanuary 28, 2023
Purchase Domain Names With The “.gh” Extension To Generate Revenue And Expand In The Local Internet Industry – GDNR
Telecel to Become the Second Player After MTN Ghana to List on GSE After Takeover of Vodafone Ghana
Mahama To deliver A lecture On ‘Africa’s Strategic Priorities’ in UK Today
Mali Defends Ties With Russia
Vanguard Awards Night Of Glamour, Glitz, And Excitement
Muslims Will Support Bawumia As They’re Not Welcome In NDC – Anyidoho
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In