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Inflation to hit single digit by 2017

Poor economic conditions have seen the country’s inflation rate move from single digit in 2010 to 18.5 percent today.
 
 

Ghana’s inflation rate is set to reach single digit by end of 2016, as has been optimistically announced by Deputy Governor of the Bank of Ghana, Millison Narh.

Poor economic conditions have seen the country’s inflation rate move from single digit in 2010 to 18.5 percent today, but government has targeted an inflation rate of 8% by the end of 2016.

Deputy Governor of the Bank of Ghana, Millison Narh believes it is possible.

READ MORE: Consumer price inflation Inflation slows to 18.5 percent in February

Speaking at the 25 anniversary of NDK Financial Services, Millison Narh was upbeat about the central bank’s ability to stir the country back a single-digit inflation rate.

Financial experts are however doubtful that the target will be achieved given the usual gross over expenditure by governments during election years.

Government expenditure, especially during election years has a direct link with inflation given that the latter increases the supply of money in the economy, thereby pushing demand-driven inflation up.

Mr. Narh maintained that the central bank will not relent in its role of streamlining government expenditure in the election year.

“ Government expenditure in election years seem to have driven inflation up in the recent past, but we assure Ghanaians that all the necessary steps within the power of the   central bank in ensuring that inflation indeed reaches a single digit rate, even if  it means doing all in our power to help streamline government expenditure.”

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