Tackle Inflation Drivers Through Direct Intervention – Analyst to Govt

Financial Analyst, John Kyei has called on government to take decisive measures to address the key factors driving inflation in the country, warning that failure to act could reverse gains made toward economic stability and lower interest rates.

Speaking on Business Breakfast on ZED 101.9 FM, Mr. Kyei said the latest inflation figures released by the Ghana Statistical Service clearly point to the major pressures affecting the economy.

His comments come after the Statistical Service announced that Ghana’s inflation rate increased to 3.4 percent in April 2026 from 3.2 percent recorded in March.

According to the financial analyst, the depreciation of the cedi, rising labour-related costs and other production pressures remain key drivers of inflation.

“I think the drivers of inflation are clear. We are having issues of depreciation of the cedi and also major factors relating to labour costs,” he stated.

Mr. Kyei stressed that government must introduce direct interventions targeted at the specific causes of inflation to prevent further increases in the coming months.

“There must be direct intervention in all those issues driving inflation now,” he emphasized.

He warned that rising inflation could undermine efforts to achieve lower interest rates, which he said are necessary to reduce the cost of borrowing and stimulate economic growth.

According to him, maintaining stable inflation levels would help Ghana attain single-digit interest rates and support businesses to expand operations.

“We do not want to go back. The objective of achieving significant interest rate reductions to lower lending costs and spur economic growth should be aggressively pursued,” he noted.

Mr. Kyei further indicated that government should use the data provided by the Statistical Service as a guide for policy interventions.

“The Statistical Service has given clear indications of the factors driving inflation. We must see direct intervention to reduce those costs and keep inflation stable,” he said.

He stressed that controlling inflation over the next year would help restore economic confidence and create conditions for long-term growth.

“I believe government must look at the drivers, intervene directly and try to reduce them so that we do not see another increase in the next month,” he added.

The analyst also raised concerns over the growing cost burden on businesses, citing increasing bank charges, insurance costs and utility tariffs as major challenges affecting operations and productivity.

Mr. Kyei said many businesses are becoming increasingly worried about the rising costs associated with financial services and accommodation, particularly at a time when inflation continues to edge upward.

According to him, many businesses incur significant expenses on accommodation and conference-related activities, making rising hotel and service costs a growing concern.

Mr. Kyei particularly highlighted increasing bank charges, saying businesses are struggling with the high cost of financial transactions despite recent reductions in interest rates.

“I checked my bank statement and when I saw the charges, it was significant. I’m sure most businesses are facing that challenge,” he said.

He called on the Bank of Ghana to intervene and help streamline charges imposed by commercial banks to ease the pressure on businesses.

“I don’t know whether the Bank of Ghana is aware, but they must intervene for us to reduce the cost of financial services,” he stressed.