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Update: July Inflation Was Rather 61%- US Economist Reveals

A US-based Economist Professor Steve Hanke has disputed inflationary figures published by Ghana Statistical Service (GSS) for the month of July 2022.

Whereas the agency said July inflation was 31%, the economist says that is a blatant lie. He said his calculation of Ghana's inflation leaves him at over 60%.

He posted this on his Twitter handle intercepted by CitizenOne.

"On August 4, I measured Ghana's inflation at a stunning 58%/yearr-almost 2 tims the official inflation rate of 30%/year. Ghana must mothball its central bank and install a CurrencyBoard", Hanke twitted.

In a follow up twit, the economic professor saif his new calculation left him at 61% inflation. He described the situation as dire and distress.

"Ghana passes the begging bowl to the IMF yet again. This time, it is asking for $3bn. Spoiler Alert: Just like Ghana's past 17 IMF programs, a new one will not deliver Ghana to the promised land. Today, I measured inflation in Ghana at a punishing 61%/year", he wrote.

Professor Steve also commented on the free fall of the cedi against major currencies. He said his calculation here suggests that the cedi has depreciated by 34% since January 2020. He went ahead to describe the bank of Ghana as a useless institution which should be disbanded from managing the currency.

"In Ghana, the economy is in the tank. By my calculations, the cedi has depreciated by 34% against the USD since January 1, 2020. The cedi is a central bank junk currency. Ghana must mothball its central bank and install a currency board," he states.

What is Currency Board?

A currency board is typically instituted as a vehicle for an extreme form of pegged exchange rate. When such a board is instituted, exchange rate and the money supply decisions are taken away from the country's central bank.

The cedi has been falling against major trading currencies, chiefly the US dollar, Pounds Sterling and Euro, since the start of 2022. Available data show that $1 was going for GH¢8.55 as at Monday August 8, 2022, a further depreciation of 0.59% of its value according to report sighted by CitizenOne.

So there are two different inflation figures; 31% from government and 61% from Steve Henke. As a citizen and consumer, which one do you believe? Use the comments section to share your thoughts.

In a related development, the President of IMANI Africa, Franklin Kudjo says the finance minister deceived Ghanaians that the economy was in good shape. He said the 7% growth rate which was trumpeted was false after all. The founder of the think-tank said the Russian invasion of Ukraine cannot be blamed for this either.

He was speaking in an exclusive interview on Metro TV Inside Pages when he made these comments.

Content created and supplied by: CitizenOne (via Opera News )


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