Inflation can occur in nearly any product or service including need based expenses such as housing, food ,medical care and utilities as well as want expenses like cosmetics and jewelry, once inflation becomes prevalent throughout an economy , the expectation of further inflation becomes an overriding concern in the consciousness of consumers and business alike.
There lots of reasons a country will go into inflation whether internal or external effect. Ghana’s inflation rate is alarming and is having a huge turn over for its citizen.” Ghana inflation accelerated to 27.6% year on year in May from 23.6% in April, statistics agency data showed on Wednesday hitting a new year peak and making a yearly of quacking price growth.” Ghana a third world country and also a developing country facing inflation is nothing good to write home about. People will say as a world leading cocoa producer how is it that we have a hiking inflation rates.
The reason for this inflation seems external and also is having a toll on almost every country around the globe. One is the world pandemic which took everyone by a surprise making every country draw new budgets just to be able to fit the situation at hand. And with this, major projects that were to take place were at halt due to the pandemic and the government had to issue new policies to curb and protect citizens. According to the report by the finance minister on the impact of covid19;
- There was disruption of food supply chain which dropped in value creation and delays in shipment of major goods and services.
- Widespread supply shortages (including food pharmaceutical and manufactured goods) and attendant huge price increases
- Decline in international price of crude oil with significant revenue loss to oil exporting countries.
These above really had a huge impact on our economy hence making lots of prices going up at an unbelievable price. This type of external issues had drastic effect on our import and export changes due to the halt globally.
There is the issue of the Ukraine Russian war. As a major import of oil and other foodstuff like wheat, cereals, and flour from Russia, Ghana suffered a huge loss of importation due to the war and also causing a range of changes in the increase of petrol, and LP gases. The USA is also having its fair share of hikes in prices. This had a huge change on the international market, according to the Nations COMTRADE database on international trade Ghana’s imports from Russia were valued at US$ 119.42 million in 2020 with a recording in 2019 of US$ 123.8 million. Due to the sanction imposed on Russia, these imports were seized and had an effect on the country. Economists are having hard times trying to fix the mess created to stabilize the current situation. And with this, there is the need to add taxes and also increase lots of stuff to be able to stabilize the economy.
HOW HAS THIS AFFECTED THE PEOPLE
Due to these two major factors leading us to inflation, it has taken a drastic change in the people in the country.
There has been an unbelievable price hike in the country. Buying now comes with having extra because there is no price stability currently, causing people to buy less and producers to produce less. Many producers are now trying hard to maintain prices to prevent loss but are finding it hard to. Other companies have been on pause for some time now to be able to compete in the market. There has been a situation where petrol and LP gases have been on the rise each time. This year we have experienced three conservative changes in prices and when this happens everything also goes up. And the people are currently looking for small means to live in the country.
with the inflation going higher more new taxes are introduced. taxes taken is also becoming a burden even though the government tried to decrease it with the introduction of E-LEVY nothing changed and things keep getting higher and higher. With this, there should be something done to prevent us from going into famine. In a country with every resource, this is happening is alarming. how can reduce such hardship for the country? who should we blame the government or the people?