The inflation rate in the country has seen a surge and drop at various points from the beginning of the year till date.
The current depreciation of the cedi and pricing of crude oil, led to an increase in fuel prices. This further resulted in a hike in transportation fares and food prices.
As a result of the pressures on the exchange rate, inflation was affected. Due to the depreciation of the cedi, local currency has since crossed GH¢5 to a dollar.
The hardest hit by the cedi’s depreciation are importers of all kinds of goods and services who have had to look for more cedis to ship their packages or enjoy the services into the country, including spare parts dealers. In all, the additional cost they sustain as a result of the depreciation is passed on to people who buy the products. This continues to be a burden on the necks of most businesses.
A number of factors contributed to the depreciation of the local currency to the dollar, despite political assurances.
Also capital flight which is said to be the rapid movement of large sums of money out of a country due to political or economic instability, caused the uncertainty of inflation.
Other factors such as the country’s economic condition, monetary policy and global market conditions impacted the currency on a regular basis. There is also the fact that when global demand for a country’s exports is low, the value of its currency declines. All these led to the rise and fall of inflation despite its record been in single digit.