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Prof. Steve Hanke's Was Wrong on Ghana's Inflation Rate : Razak Kojo Opoku Writes

Steve Hanke, a professor of applied economics at Johns Hopkins University in the United States, has recently been on the government of Akufo-neck, Addo's accusing it of economic mismanagement and adamantly asserting that he has been measuring Ghana's inflation rate on a monthly basis since January 2022. Professor Steve Hanke reported that for the month of August, Ghana's inflation rate was 83%, which is twice the official announcement of 33.9% by the Ghana Statistical Service (GSS). 

I want to know the following from Prof. Steve Hanke in the first place: 

1. What is the credibility and acceptance rate of his "Hanke's Inflation Dashboard" globally?

2. Is "Hanke's Inflation Dashboard" the only platform accredited for the computation of inflation figures for nations around the world, and is it more widely known globally? 

3. Is "Hanke's Inflation Dashboard" superior to the Global Database for Inflation maintained by the IMF and World Bank? 

4. Does "Hanke's Inflation Dashboard" have a higher level of reliability and veracity than the U.S. Bureau of Labor Statistics (BLS)? 

Professor Steve Hanke is free to voice his view on the state of the world's economies, but I believe he should do so while keeping in mind the veracity of the data and the realities of the local economy.

It is utterly inaccurate and represents intellectual dishonesty on the part of Prof. Steve Hanke to estimate the inflation rate for other sovereign nations using the goods that Americans buy. 

Due to what we used to refer to as "quality adjustments," it is practically impossible to compare the evolution of inflation in various countries. This is because different countries use different methods to measure consumer prices. 

I would like to remind Prof. Steve Hanke of the following: 

1. Citizens of various nations purchase various goods, services, and products. 

The tastes of consumers in Ghana could be very dissimilar from those of consumers in the United States.

2. Every country's economic cycle goes through different stages and experiences different rates of economic growth. 

3. There are various trends in the growth of costs and income. For instance, although the bulk of European inflation is driven by the short-term volatility of important economic sectors, the United States of America's inflation rate is primarily determined by its monetary policy. 

Since the Bank of Ghana has made a fair number of monetary policy interventions since January 2022, yet inflation has continued to rise, monetary policy in Ghana appears to have little effect on keeping inflation under control. 

The majority of Ghana's rising inflation is attributable to imported goods, and it has gotten worse as a result of Russia's invasion of Ukraine.

Although China's inflation rate is significantly lower than that of the United States of America, I don't believe Prof. Steve Hanke would publicly acknowledge that China's economy is performing better than that of the United States of America because of this. 

"Hanke's Inflation Dashboard" cannot be used to discredit the data provided by the Ghana Statistical Service (GSS). 

The 83% Inflation by Prof. Steve Hanke is very misleading and improper since his Methodology is very Wrong. 

In the United States of America, CPI generated by Bureau of Labor Statistics(BLS) is the most generally used measure of Inflation. 

The primary CPI (CPI-U) is intended to quantify price changes experienced by urban consumers, who make up 93% of the country's population.

The Consumer Expenditures Poll, a survey of American families, is used by the Bureau of Labor Statistics (BLS) to choose which goods should be included in the inflation basket and how much weight to give to each item. 

Prices are weighed based on how significant they are to the typical American consumer. 

It is crucial to stress that neither American citizens nor the federal government of the United States rely on "Hanke's Inflation DashBoard" in any way. 

The Bureau of Labor Statistics (BLS), which performs duties akin to those of the Ghana Statistical Service, is more heavily relied upon by the American government and its citizens (GSS).

The Social Security Benefits are adjusted for inflation by the Federal Government of the United States of America using a variation of the CPI known as the "CPI for Wage Earners and Clerical Workers." 

Since Congress modified the law in 2017, the "Chained Consumer Price Index for All Urban Consumers" rather than the "Primary CPI" is now used to adjust tax brackets for inflation. 

The Bureau of Economic Analysis(BEA) also produces the Price Index for Personal Consumption Expenditures as a further indicator of inflation. 

Even in his own country, the United States of America, Professor Steve Hanke is not an authority on measuring inflation.

Even in the United States of America, Professor Steve Hanke's "Hanke's Inflation Dashboard" is NOT an accredited platform for computing inflation. 

Prof. Steve Hanke recently asserted that there is an 80% possibility that the United States will have a recession, but the Federal Bank of America rejected his assertions.

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Akufo-neck Ghana Johns Hopkins University Steve Hanke United States


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