By: Memuna Asuma
Players in the trade, commerce, industries and transport businesses are expected to reduce their market prices as inflation and forex exchange rates keep improving.
Reacting to the current rate of inflation which dropped to 45% for the month of March 2023, the Government Statistician has indicated that the continuous drop in the prices of petroleum products and other goods and services are yet to reflect in transport fares. This is due to its slow impact on other factors of transportation, he noted.
Although the drop in diesel and petrol prices for some time has been significant, it will translate into transport fares if spare parts and other component of the transportation sub-class record same reduction. However, Ghana Union of Traders Association (GUTA) has called on its members to respond positively to the improved economic position of the country and adjust prices accordingly.
“Yes, we have seen some drops in diesel and petrol prices for the past few months. But one must bear in mind that other factors that makes up the component like the taxi cost and spare parts or materials are yet to get the impact of these reductions”, Professor Samuel Kobina Annim said last week, at a press briefing.
The rate of inflation for the month of March 2023 slowdown as a result of some historic deflation recorded in the Food and Non-alcoholic Beverage group during the period February 2023 and March 2023.
Professor Annim believes that the Consumer Price Index has been consistent with the decline in inflation since the beginning of the year, a situation he attributes to many factors.
Meanwhile, in a statement issued last week by GUTA, efforts by the government and the Bank of Ghana to bring down inflation and exchange rate are commendable, hence the call on its members to cut prices of goods.
“GUTA, entreats all members of the business community to respond positively to the changing trend and adjust prices to reflect the exchange rate. We express our pleasure to the government and the Bank of Ghana for their efforts at bringing down inflation and exchange rate”.
It urged government to continue with the efforts and take advantage of the reduction of the exchange rate to further reduce inflation and other costs of doing business in the country.
It added that this could be achieved by adjusting customs valuation rate to reflect the current trend of the exchange rate.
“We wish to urge government to continue with the efforts and take the advantage of the reduction of the exchange rate to further reduce inflation and other costs of doing business. Adjusting customs valuation rate to reflect the current trend of the exchange rate”.
Last week, the cedi gained across the major trading currencies in the foreign exchange market following progress on Ghana’s negotiations with its bilateral creditors.
It gained 10.27% week-on-week against the US dollar in the retail market to close at a mid-rate of ¢10.95 to one US dollar on Thursday, April 6, 2023.
Also, inflation for March 2023 fall sharply to 45%, influenced by some deflation of items in both the Food and Non-Alcoholic Beverages group and Non-food inflation.
