Gov’t Must Focus on Inflation Drivers, Not Just Headline Figures – Analyst
By: Solomon Nartey Tetteh
Economic Analyst Emmanuel Boateng has urged policymakers to focus on the underlying drivers of inflation rather than merely reacting to headline figures.
Speaking on Business Breakfast on Zed FM following the release of the January 2026 Producer Price Index (PPI) report by the Ghana Statistical Service, Mr. Boateng stressed that understanding what is fueling producer inflation is far more critical than being fixated on the numbers themselves.
“If you are a policymaker, the major thing you need to look at is not even the numbers, but the drivers. What is driving the inflation? That is the fundamental question that must be answered and addressed,” he said.
According to him, focusing solely on the figures could lead to policy responses that target the wrong areas.
“If you look at the numbers alone, you may be skewed into addressing something that is not particularly correct,” he cautioned.
Mr. Boateng pointed out that the main pressure is not coming from the services sector. Instead, he identified industry, particularly manufacturing and construction as the primary contributors to the current producer inflation trends.
“Your issue is not services. Your issue is industry, less construction. That is where the chunk of the problem is,” he explained.
He advised that policy interventions should be directed toward these sectors to ease cost pressures.
“Once you are able to address that, I think you should be good to go,” he added.
The analyst also noted that inflation figures do not rise in isolation but often reflect earlier policy decisions.
“These numbers didn’t just go up on their own. Somebody triggered them or they were directed at them,” he said.
He specifically referenced prior signals about upward adjustments in Public Utilities Regulatory Commission (PURC) tariffs, indicating that such decisions are now being reflected in the latest inflation data.
“When there was a signal that the PURC tariffs were going to go up, that is what is reflecting explicitly in the numbers we see today,” he explained.
