The Managing Director Esoko Ghana, Mr. Bernard Otabil, has stated that the recent reduction in inflation would not affect the prices of goods and services in the country.

According to him, there are seasonal adjustments and shifts in demand and supply conditions that affect market dynamics, as well as price variations between periods.

Mr. Otabil was commenting on the recent drop in inflation (9.52%) for the month of June. He told The Business Chronicle that the low inflation rate does not necessarily mean that prices would not rise.
He said the notion of a drop in calculated inflation means prices of goods and services are reducing, or should be reducing is wrong.
“The confusion is that some people actually believe that a falling inflation rate means prices are falling, not at all, it actually means that the rate of increase between periods has decreased. It does not necessarily mean that you should go to the market and pay less”, he explained.

“For instance, some weeks back, the price of tomatoes in the Agbogbloshie market was on the rise because of supply shortages. There was nothing to suggest that people were demanding more tomatoes. But in our monitored activities for the week to July 16, wholesale and retail prices of tomatoes from the same market was GH¢1.70 and GH¢1.90 per kilo respectively, a drop of 61 and 60 per cent, because of arrival of more tomatoes into the market”, he said.

Mr. Otabil maintained that economics is played on the street, and not in an office somewhere, adding “It is about people’s behavior, their perceptions and feelings that make them take economic decisions”.
The chronicle

Source: The Chronicle/Ghana