High inflation rate will dampen investor confidence – GNCCI

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The Ghana National Chamber of Commerce and Industry (GNCCI) has described the April 2022 inflation rate of 23.6% as unacceptable.

According to the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu Aboagye, the current trajectory will not just make doing business in Ghana unbearable but also dampen investor confidence. 

 “If you have invested in any asset giving you a rate less than 23.6% means you have lost. It means the real interest rate will be negative. Investors will look out for countries where they will get a higher rate which is higher than the national inflation rate, so that their real interest rates will be positive”, he told Joy Business

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“So it’s obviously not a good sign for Ghana and we must deal with it now or risk losing investor confidence,” he added. 

 With the inflation rate mirroring the high cost of doing business in Ghana, the boss of the Ghana National Chamber of Commerce and Industry is concerned about the impact on the final consumer.

 “Inflation rate of 23.6%, anywhere is unacceptable. In the end, the cost of production will go up and producers will be forced to push the cost on consumers. This must be averted with inclusive and practical immediate to medium term measures,” he added.

 April 2022 food inflation (26.6%) is higher than both March 2022(22.4%) and the average of the previous 12 months (13.5%).

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Food inflation’s contribution to total inflation however, decreased from 51.4% in March 2022 to 50.0% in April 2022

All the 15 food subclasses recorded positive month-on-month inflation with Fruit and Vegetable Juices recording the highest (15.3%).

For Non-Food inflation, year-on-year inflation on average went up again in April 2022 compared to March 2022 (from 17.0% to 21.3%). Only one out of the 12 Non-food Divisions had the 12 months rolling average to be higher than the year-on-year inflation for April 2022 for the divisions.

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