INFLATION DROP YET TO IMPACT LIVING CONDITIONS – ECONOMIST QUESTIONS REAL BENEFITS

An economist, Sampson Anomah, has raised concerns about the real impact of Ghana’s recent drop in inflation, questioning whether ordinary citizens are truly benefiting from the figures. Speaking in an interview on a morning show hosted by Nana Nhyiraba Kwabena Asirifi, he acknowledged that inflation has declined from 3.3 to 3.2, describing it as a positive development. However, he stressed that the key issue is whether this reduction is translating into relief for Ghanaians. According to him, a drop in inflation should ease financial pressure on citizens, but this has not been the case, as many people continue to struggle with reduced incomes and high living costs. He explained that inflation going down does not necessarily mean prices of goods and services are falling, but rather that prices are increasing at a slower rate. Meanwhile, incomes have not improved, leaving many households under financial strain. The economist further pointed out that key expenses such as electricity and fuel continue to rise, worsening the situation for consumers. He noted that high taxes, particularly on fuel, contribute significantly to the cost of living, adding that even if some taxes are reduced, the overall impact may still be limited. He also raised concerns about the country’s economic performance, suggesting that a decline in GDP and weak economic activity are affecting people’s earnings and purchasing power. Touching on inflation measurement, he argued that official figures may not fully reflect the reality on the ground, as market prices vary and individuals experience cost increases differently. He cautioned that inflation trends could rise again if underlying economic challenges are not addressed. The economist concluded that while the drop in inflation is encouraging on paper, its real value should be measured by improvements in the daily lives of Ghanaians.