The Bank of Ghana is projecting this year will end with an inflation rate of 12 percent.
The new rate follows the central bank’s expression of doubt that the initial target of 9.5 percent would be met.
According to the Governor of the Bank of Ghana Dr Henry Kofi Wampah ‘“With the forecast for inflation for 2014, we do not believe we will be able meet it unless there are changes.’
Ghana’s inflation rate currently stands at 14 percent, this rate is for the month of February and it’s the highest since 2010.
Inflation has been increasing since last year hitting 13.5 percent far beyond government’s target of 9 percent for that year.
Last year’s increase in inflation has been attributed to the removal of subsidies on electricity and water as well as increase in the prices of petroleum products among others.
Reasons for this year’s increase have not been any different.
Governor of the Central Bank, Dr Henry Wampah says an evaluation of the current economic situation casts doubt on achieving the 9.5 percent target.
“In assessing the outlook for inflation, the Committee noted that inflationary pressures have heightened, driven by periodic increases in fuel and utility prices, currency depreciation and supply-demand gaps in the general economy.’
According to Dr Wampah the Bank’s latest forecasts show that inflation will only return to the target band of 9.5±2 percent towards the end of the first half of 2015.
‘The current forecast indicates we’ll return in 2015. It indicates the inflation for 2014 will be around 12 percent.”
By: Kwaku Anim Boadu/citifmonline.com/Ghana