Usually, Ghana’s inflation rate sees a rise ahead of a Christmas season. But this time round, things may take a different turn as economic activities return after COVID-19 hit hard in an election year.
This is according to an economist, Dr. Adu Owusu Sarkodie.
The inflation rate for September, which is 10.4 percent, is the second consecutive drop in two months after it decreased from 11.4 percent in July to 10.5 percent in August.
Although a huge rise in inflation has been predicted for this year due to distortions in economic activities largely caused by the COVID-19 pandemic and the impending election, Dr. Sarkodie told Citi Business News these activities will rather stabilize the country’s inflation rate.
In a different opinion, an economist, Dr. Lord Mensah, has cast doubt on Ghana’s ability to achieve its end of year inflation target of 8 plus or minus 2 percent.
In an interview with Citi Business News, Dr. Mensah said aside the impact of COVID-19 which has resulted in an increase, factors such as the upcoming election and the Christmas season will make it difficult for the country’s inflation rate to go back to how it was before the pandemic.