Inflation in Ghana is more domestic driven – IMF.

Inflation in Ghana is more domestic driven – IMF.

According to the International Monetary Fund (IMF), the high inflation rate in Ghana may be mostly linked to causes that are present within the country.

The claim that inflation in the nation is attributable to external reasons such as the situation between Russia and Ukraine, which has driven up the cost of various products, notably wheat and grains, is disproved by this evidence.

At a recent press conference held in conjunction with the Spring Meetings of the International Monetary Fund and the World Bank, the African Director of the Fund, Abebe Selassie, stated that the Fund's analysis shows that domestic factors, rather than exogenous factors, are the primary drivers of inflation.

“On inflation, I mean, again, there are always trade-offs when you’re doing, policy calibration, and so in our regional economic outlook, we are very careful to flag that there are some countries where inflation has clearly been driven more by domestic factors than exogenous factors. I think Ghana would fall in that camp.”

“But there are also quite a lot of other countries where the inflation we are seeing is more imported inflation, so the scope and the space and the ability of monetary policy to address that is limited. So again, it depends on country-specific circumstances, and on time”.

Mr. Abebe also said the calibration of monetary policy must be always agile.

This is because the conditions that affect inflation are always changing, adding, “exchange rates are moving, commodity prices are moving, so it’s an area where, calibration must be very, looked at again and again and again, as the months proceed. That’s why, Central Bank can say you have to be forward-looking, data-driven, so our advice is also, very much, subject to those considerations”.

Also Read: Ghana's inflation surges to 40.4% in October.

Source: ghananews.hrforum.uk