Stronger market regulation needed to achieve single-digit inflation – Economist
By Solomon Nartey Tetteh
An Economist, Dr Valentin Mensah has stressed the urgent need for stronger regulation of market practices if Ghana is to return to single-digit inflation by the end of the year.
Speaking on Business Breakfast on Zed 101.9FM, Dr Mensah noted that the government does not necessarily need to impose formal price controls, as was done during the military era, but can adopt informal regulatory mechanisms to help stabilise prices across sectors.
According to him, an effective strategy would be for government to work more closely with unions and cooperatives, such as the Ghana Private Road Transport Union (GPRTU) and various trade associations, to discourage arbitrary price hikes.
“It’s not always about government directly controlling prices. If government interacts with cooperatives and unions, it becomes easier to maintain fair pricing and prevent traders from increasing prices indiscriminately,” Dr Mensah explained.
He also expressed concern over the inconsistency in market pricing, citing a personal experience where he encountered wide price variations while attempting to purchase cement on a Sunday, despite being aware of the average market price.
Dr Mensah further criticised the limited availability of goods on Sundays, contrasting it with global practices where retail outlets reopen after church hours to serve consumers. He argued that modernising retail culture and improving availability could contribute to price stability and efficiency.
The economist emphasised that strengthening producer and trader cooperatives could play a pivotal role in regulating markets, reducing inflationary pressures, and shielding consumers from price exploitation.
Turning to the structural roots of Ghana’s inflation problem, Dr Mensah described the economy as “deeply fragile”, pointing to the country’s long-standing dependence on imports.
“We don’t consume what we produce. Most of what we use is imported, and even for local production, we rely heavily on imported raw materials. That creates constant demand for dollars, and any time the cedi depreciates, prices shoot up,” he noted.
While acknowledging that favourable global conditions could temporarily ease inflation, Dr Mensah warned that long-term price stability would only come through strengthening agriculture, boosting manufacturing, and expanding agro-processing to reduce Ghana’s import dependence.
