Although Ghana’s inflation trend has been on a downward trend for the most part of this year, employers are bemoaning a high cost of living and harsh business environment.
The employers say their customers and consumers are reeling under harsh economic conditions including themselves who are also consumers.
Chief Executive Officer of Unilever Ghana Limited, Chris Wulff Caesar who was speaking at the 64th Annual General Meeting of the Ghana Employers Association said although inflation has been declining, the rate is still high and unfriendly to businesses hence worsening the plight of consumers.
He further lamented over what he describes as a high lending rate that businesses are grappling with in the country worsening the cost of credit in the country.
Chris Wulff Caesar narrated that, “Ghana recorded an average inflation rate of 40.3% in 2023 which has been trending down but still high in 2024 with a year-on-year value of 20.9% in July this year and an average of 23.5% in the first 7 months of 2024 according to Ghana Statistical Service. This is very high. I don’t think wages have increased by the same amount. Businesses are currently in negotiations.
“It is a tough environment. We continue to experience high lending rates ranging between 28 to 31%. We are experiencing a very high-cost environment and inadvertently, our consumers and our customers. Even though of all of us in here probably about 200, 250 we are all business leaders, but when we leave here we also have to use our little money to buy,” he added.
The latest inflation figures published by the Ghana Statistical Service reveal that the year-on-year inflation rate slowed slightly in August, dropping to 20.4% from 20.9% in July.
The latest decline is the fifth consecutive drop in the rate.
The marginal decrease in August was largely driven by a reduction in food inflation which eased to 19.1 percent from 21.5 percent in the previous month.
The Government Statistician, Professor Samuel Annim speaking at a news conference on Wednesday in Accra, attributed the slowdown to falling prices in key food categories such as milk, oils and fats, and fruits and nuts.
Despite the 5th consecutive drop, the Ghana Employers Association says the rate is still high and hence stifling businesses.
