The effect of the depreciation of the Ghana cedi on the rate of inflation is not likely to end anytime soon.
According to Government Statistician, Professor Samuel Kobina Annim, the policy decision to be taken in the next few months will determine if the current volatilities in the exchange rate between the local currency and the US dollar will continue to influence inflation.
He was responding to questions after releasing the October 2022 inflation which surged to 40.4% with imported inflation recording very high rate than locally produced items.
Professor Annim, therefore, believes a drastic policy decision can make a huge impact on the rate going down.
“In terms of how the exchange rate is impacting on this [inflation], one has to look at two things, thus the past through effects and how many items experience the effects as well as the timing of the effects”.
“So it is possible that the impact of the exchange rate will linger on for a number of months. But the determination of the months will depend on the kind of policy tis are going to be introduced in the next two to three months”, he pointed out.
He added that “so whether we peak or not will depend on what is happening and the items that are going to be affected and the price increases”.
Inflation for locally produced items was 39.1%, whilst inflation for imported items was 43.7% in the month of October 2022.
Almost all 307 items used in measuring inflation recorded an increase in October 2022.