Capping of inflation; to spend to grow the economy – Quartey to the government

Company News of Thursday, March 28, 2019

Source: dailymailgh.com

2019-03-28

The head of the economics division of the Institute for Economic and Social Statistics is working to limit the rate of inflation in Ghana.

Professor Peter Quartey believes that this is essential to help companies plan and develop their operations.

At the 4th Economic and Business Breakfast Forum, Professor Quartey said that even if a stable inflation rate is good, a certain level of increase is needed to promote the spending in the economy.

According to him, the government should not be more concerned with economic growth than with single-digit inflation.

"We expect our country to reach an optimal level of inflation. We must evaluate and know that it is the level of inflation that will not hurt jobs and that we ensure your growth.

"Because there is a trade-off between inflation and employment. While the government is trying to cut spending; if you do not spend, you are not helping to create jobs. So we have to strike a balance between the level of inflation you can hold and allow companies to forecast. are able to invest; are able to make income.

"In the same way, you should also cap the level of inflation you can hold," said Professor Quartey.

The government target for consumer price inflation (CPI) of 8.9% for 2018 was narrowly missed, with the CPI reaching 9.4% as of December 31, 2018.

Meanwhile, the inflation rate has remained in the single digit area for more than six months.