As Ghana prepares for a new administration under President-elect John Mahama, economists are urging the incoming government to prioritize reducing food inflation. Professor John Gatsi, Dean of the University of Cape Coast Business School, has emphasized the need for the Mahama administration to address the pressing issue of food inflation, which currently stands at 25.9%.
The latest data from the Ghana Statistical Service indicates a significant increase in food inflation, from 22.8% in October to 25.9% in November 2024. This trend is causing concern among economists and households, as a significant portion of the population spends a substantial amount of their income on food.
Professor Gatsi stresses that reducing food inflation is crucial to bringing overall inflation down and providing relief to households. He recommends that the incoming administration deploy its policymakers to address food inflation by stepping up production of essential food items. This, he believes, will require targeted investment in agriculture to make it more effective.
The Ministry of Agriculture, according to Professor Gatsi, must reassess its operations and set targets that will help reduce food inflation, ultimately impacting the cost of food in the market. He also emphasizes the importance of directing finances to the rural economy, where most food production takes place.
"Investment in agriculture will have a direct link to other sectors of the economy, stimulating growth," Professor Gatsi notes. He believes that a comprehensive approach to addressing food inflation will require the coordination of various stakeholders, including policymakers, farmers, and the private sector.
The incoming Mahama administration faces significant challenges in addressing food inflation, but by prioritizing this issue, it can provide much-needed relief to households and stimulate economic growth. As Ghana looks to the future, it is essential that the new administration takes a proactive approach to addressing food inflation and ensuring food security for all citizens.
By tackling food inflation, the Mahama administration can demonstrate its commitment to improving the lives of Ghanaians and promoting economic growth. It is a challenge that requires careful planning, coordination, and investment, but the rewards will be significant if the administration can succeed in reducing food inflation and promoting food security.
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