The Executive Secretary of the Ashanti Business Owners Association and Head of the Business and Economic Bureau of Ghana Union of Traders Association (GUTA), Charles Kusi Appiah Kubi, says the continued drop in inflation is offering relief to consumers and helping businesses record improved sales.
According to Charles Kusi Appiah Kubi, the slowdown in the rate of price increases helps preserve the disposable income of ordinary Ghanaians and strengthens their purchasing power.
His comments follow the latest data from the Ghana Statistical Service indicating that inflation fell to 3.3% in February, a development many in the business community have welcomed.
Speaking on the JoyNews Desk on Thursday, March 5, Mr Appiah- Kubi explained that inflation directly affects how much consumers can afford to spend on everyday goods.
“Inflation defines the rate at which the prices of selected items within the inflation basket increase,” he said. “When we see inflation going up, what it does to the ordinary Ghanaian is that it depletes his disposable income.”
He noted that the situation becomes even more challenging when salaries do not increase at the same pace as rising prices.
“In a situation where inflation is not corresponding with salary increments, it depletes the ability and the purchasing power of the ordinary Ghanaian to engage in common commodity trading by buying food and other items,” he explained.
However, he said the recent slowdown in inflation is easing the pressure on consumers.
“When we see a reduction in inflation, it means the rate at which prices would have increased is slowing down. That helps sustain the disposable income of the ordinary Ghanaian and gives some level of respite,” he added.
Mr Appiah- Kubi also pointed out that the easing inflation has already influenced prices in some markets, with several goods becoming cheaper.
According to him, some farmers have even complained that the prices of their produce have dropped significantly.
“You can hear most farmers complaining that they have a lot of farm produce and the prices have reduced. The price they have to start the market with is sometimes far below their cost of production,” he said.
Despite that concern, he indicated that businesses generally benefit when consumers are able to afford goods.
“Our joy as businesses is when the consumer can patronise what you are selling,” he noted. “Over the period of about a year and more, we have seen prices of items coming down and that has helped increase some level of sales within the business community.”
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Source: www.myjoyonline.com