Government has been entreated to work closely with various stakeholders to bring down food inflation.
According to Senior Lecturer at the Department of Economics of the University of Ghana, Professor Eric Osei-Assibey, this is a smart way of reducing inflation.
Recent data from the Ghana Statistical Service shows that food inflation went up to 61% in January 2023, from 59.7% in December 2022.
Professor Osei-Assibey says this requires the adoption of such policy to bring the rate of food inflation down.
Speaking at the American Chamber of Commerce-Ghana 2023 Economic Outlook Report, he said government should be deliberate in its attempt to support the agriculture value chain.
“Looking at the current hike in food inflation has to do with our inability to produce enough for what we consume which is serious. So I am of the view that if we are able to come out of this crisis, we need to be deliberate in our approach for good policies to support farming on a large scale”, he stated
He called for investments in the sector and requested banks to review a number of the sector’s support initiatives.
He again urged government to step up efforts to raise domestic tax collection.
“When we have banks supporting agriculture, I think it will help to ensure a robust economy. We need investment at this point in the agriculture value chain. There is also the need for government to rake in more revenue to support various sector of the economy”, he added.
The American Chamber of Commerce Ghana 2023 Economic Outlook report provided insight into government’s tax provisions, fiscal and monetary development, debt sustainability, and key macroeconomic performance and targets.
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