Hoarding, price hikes fuel inflation – Economist warns traders
A Senior Economist at the Centre for Greater Impact Africa, Dr Samuel Worlanyo Mensah, has cautioned businesses against hoarding goods and inflating prices, as Ghana works to sustain its recent single-digit inflation rate.
Speaking on Twelve Live on Zed 101.9FM, Dr Mensah emphasised the crucial role of honesty and integrity among citizens and businesses in preventing unnecessary price hikes that could reverse inflation gains.
“On an individual level, we are responsible for being honest, avoiding hoarding, not inflating prices astronomically, and not selling goods at exorbitant rates. When we do so, it contributes to inflation and raises the cost of living,” he emphasised.
Despite a significant drop in inflation in September, Dr Mensah highlighted concerns that government spending on initiatives like the Big Push agenda and payments of corporate and individual bonds will likely drive inflation upward again. He projected that the real inflation rate will become clearer by the end of November this year.
Dr Mensah explained: “When the government increases expenditure on investments and portfolios, inflation tends to rise. The Big Push agenda further escalates government spending, which impacts inflation.”
Addressing price regulation, Dr Mensah acknowledged that businesses operate to make profits, but raised concerns over the government’s heavy borrowing from the local market.
He noted that high interest rates, ranging between 40 and 50 per cent annually, are squeezing entrepreneurs, forcing them to raise prices to stay afloat. This, he warned, could increase unemployment and crime rates if not managed properly.
Dr Mensah also called for a collective commitment to Ghana’s economic progress, urging all stakeholders to prioritise national growth and development rather than allowing the economy to serve the interests of a privileged few.
