Senior Presidential Adviser Yaw Osafo Marfo revealed that the cabinet is considering the possible introduction of a price control policy to curb soaring food and goods prices in the country.
Price controls are economic policies imposed by governments that set minimums (floors) and maximums (ceilings) for the prices of goods and services to make them more affordable for consumers.
However, according to him, the cabinet has instead opted for an evacuation program to ensure that food is fairly distributed and made available across the country to stem shortages.
“Today, Côte d’Ivoire has introduced price controls by law. In Côte d’Ivoire, you cannot buy the quantity of sugar or milk you want because there are price controls. Cabinet sat on this for a long time but we said no, Ghanaians don’t believe in price controls so we should help the evacuation instead. If there is plenty of plantain somewhere, the government should help transport it to redistribute it so that food is available everywhere,” Osafo Marfo said during a meeting with some ruling party constituency leaders in Koforidua.
Consumer Price Index (CPI) data released by the Ghana Statistical Service (GSS) on Wednesday, June 8, 2022 indicates that inflation in Ghana spiked to 27.6% for the month of May 2022.
Compared to the 23.6% recorded in April, this represents a jump of four percentage points in the inflation rate. On a monthly basis, however, inflation fell by 1% to a record 4.1% in May 2022.
In a leaked tape in the possession of Starrfm.com.gh, Osafo Marfo said the effect of the Covid-19 pandemic, the war between Russia and Ukraine has been devastating, but for the competent management of the economy by President Akufo-Addo, the situation is under He said Ghana’s economy would have collapsed if former President John Mahama had been President.
“Akufo-Addo has managed the economy very well, if Mahama was president the economy would have collapsed. I was in Georgia when the Ukrainian war broke out. Georgia is next door to Ukraine, we never thought the war in Ukraine would affect Ghana. I had never thought about it. Not knowing that about 30-40% of the iron rods we use here are imported from Ukraine, wheat is also imported from there, I didn’t know that,” he said.
The Senior Presidential Adviser added, “So Ghana is lucky that some of the things that happened happened when Akufo-Addo is President. Many serious crises that collapse economies occur during the period that Akufo-Addo is president. So Ghanaians are lucky that President Akufo-Addo is the president otherwise the economic situation would have gotten worse.”