The Government Statistician, Dr. Philomena Nyarko has told Citi Business News that for inflation to be tamed this year, government would have to consider reversing the recent hikes in taxes and utility prices.
According to her, the country risks missing its inflation target following the increase in utility prices and taxes recently.
[contextly_sidebar id=”7TxFR6tzXgSX8emNm3nL2cMvjKA5hRUi”]Government’s inflation target for this year is 8%. The development, Dr. Philomena Nyarko says is likely to reflect in significant increases in inflation in January and may continue in the first quarter of 2016.
High inflationary risk last year led to the bank of Ghana increasing the monetary policy rate continuously, the rate is currently at 26 percent.
But in an interview with Citi Business News, the Government Statistician said the inflation target figure can only be achieved if there is a reduction in tariffs and taxes.
“We are talking about utility and fuel prices, taxes, rent and all others, so the influence of utility hike reflect in high price of things, then we may as a country see high inflation rates so the policy makers will have to find a way of bringing down some of these tariffs and taxes so that the common man could have some form of relief,” Dr. Philomena Nyarko observed.
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By: Norvan Acquah-Hayford/citifmonline.com/Ghana