Transport costs, bad roads driving inflation gaps — Analyst
By: Rebecca Okine
Economic analyst Emmanuel Boateng has identified high transportation costs and poor infrastructure as the primary reasons for persistent regional inflation disparities in the country, despite the national inflation rate dropping to 13.7 percent in June.
Speaking on ZED 101.9 FM’s The Business Breakfast yesterday, July 8, 2025, Mr. Boateng explained that although inflation is declining at the national level, regions such as Upper West, Savannah, Upper East, and Northern continue to face significantly higher price levels.
“The Upper West Region recorded 32.8 percent inflation more than double the national average. That’s very high, and it tells us something structural is wrong,” he said.
According to Mr. Boateng, the geographical isolation of these regions makes them highly dependent on goods transported from the south, particularly Accra. With long distances and poor road networks, the cost of moving goods is high, and these transportation costs are ultimately passed on to consumers.
“The farther they have to travel, the more expensive goods become—especially when infrastructure is weak,” he noted.
Mr. Boateng stressed that to effectively address regional inflation, the government must prioritize improving roads and transportation infrastructure in underserved areas.
“Poor infrastructure definitely increases the price of goods. We need significant investment in infrastructure. Accra is not Ghana, and the development gap between Accra and the rest of the country is too wide,” the economic analyst stated.
He also pointed out that some people mistakenly assume development in the capital reflects national progress.
“You may see a lot of development in Accra, but when you travel around the country, especially to the north, the story is different,” he indicated.
Beyond infrastructure, Mr. Boateng cited market inefficiencies as another factor keeping prices high in some regions. He explained that in areas with fewer market players, competition is limited, allowing prices to remain inflated.
“In Accra, if 3,000 people are selling the same product and you raise your price, the buyer will go elsewhere. That competition helps keep prices reasonable. But in isolated regions with fewer traders, that pressure doesn’t exist,” he emphasized.
Mr. Boateng urged policymakers to consider a more regionally balanced approach to development and inflation control.
“Inflation control can’t be just a national exercise. We must recognize the unique challenges of each region and respond accordingly,” the economic analyst added.
He called for broader investment in regional economies, especially in infrastructure and supply chain systems, to ensure all parts of the country benefit from economic stability and growth.
