Below is a press statement from the Ministry of Finance and Economic Planning, signed by its media liaison, Mr. Abdul Hakim Ahmed: “President John Evans Atta Mills and his economic management team led by Finance Minister Dr. Kwabena Duffuor, are on the verge of making history with the release of May 2010 inflation figures today by the Ghana Statistical Service (GSS).

According to the GSS, inflation rate has dropped from 11.66% in April to 10.69% in May and ‘there are indications that our target for headline inflation specified as a single digit by end 2010 is within reach,’ says Finance Minister Dr. Kwabena Duffuor.
The rate of inflation has consistently been falling since the beginning of the second half of last year. This development is in response to the sound monetary and fiscal policies adopted since the beginning of 2009 to correct the deteriorations of 2008.
From 20.7% recorded in June 2009, the year-on-year inflation has decelerated to 10.8% in May 2010.

Dr. Duffuor advised that ‘as a country, we must never again, either playing politics with inflation and interest rates, or taking risks with the public finances – or just thinking short term – allow our hard won economic stability to be put at risk.’

‘For it is not by chance but by working together that we have inflation today at its lowest rate in more than two years – but the bigger prize is to ensure that businesses can plan within an environment of lower inflation,’ he added.
Also contributing to the drop in inflation is the strength of the local currency, the CEDI which has been experiencing an unprecedented level of stability in the last twelve months. Interest rates at both the money market and the capital market have been consistently falling. This trend is expected to continue as government’s fiscal consolidation measures continue to bear fruit.

Source: The Daily Dispatch/Ghana