Economist urges weight-based pricing to fight rising prices
By: Rebecca Okine
Development economist Dr. Felix Larry Essilfie has called on the government to introduce a national scaling and pricing system to help address persistent price inconsistencies in local markets and support broader efforts to bring inflation under control.
His recommendation follows a recent announcement by the Bank of Ghana projecting that inflation will continue to decline in the coming months.
The Bank attributes this expected drop to its sustained tight monetary policy. Speaking at the Ghana Diaspora Investment Forum in Accra, First Deputy Governor Dr. Zakari Mumuni said the country is on track to reach its year-end inflation target of 12 percent.
In an interview on Zed FM’s The FOCUS, Dr. Essilfie praised the improved macroeconomic environment but said more structural measures are needed at the grassroots level.
“One major driver of food inflation is transportation. Even though transport costs have reduced, prices of basic goods like plantain remain unchanged in many markets, We need to adopt a scaling system where items are sold based on weight or quantity, with uniform pricing,” he said.
The development economist explained that such a system would remove arbitrary pricing and promote transparency in transactions, helping consumers and stabilizing market trends.
Dr. Essilfie also pointed out that growing investor confidence is likely to result in increased capital inflows. This, he said, would lower producer inflation as businesses expand output at lower costs, creating economies of scale.
“More supply means more competition, and that competition pushes prices down,” he indicated.
However, he cautioned that one overlooked factor in inflation control is corruption. Citing data from the Bank of Ghana and Ministry of Finance, Dr. Essilfie stated that Ghana loses over USD3 billion annually to corruption.
“The painful part is that these funds are not reinvested in the local economy. They’re sent abroad, contributing to capital flight and reducing domestic investment,” he warned.
According to Dr. Essilfie, a combination of effective policy, structural reforms in pricing, and anti-corruption measures are crucial if Ghana is to sustain inflation decline and achieve long-term price stability.
