Cedi gains, fuel drops won’t decrease prices - Economist

An economist warns that the recent rise of the Ghana Cedi and lower fuel prices may not lead to cheaper goods. This is due to Ghana's manual economic management approach.

Dr. Samuel Worlanyo Mensah explained that without automated economic analysis, changes in macroeconomic indicators won't benefit ordinary Ghanaians.

He spoke with the Ghana News Agency (GNA) about how Ghana’s economy lacks a structure for seamless price adjustments. Positive economic indicators do not automatically reduce living costs.

Dr. Mensah noted that while a stronger cedi and falling fuel prices are good, they don't guarantee lower living expenses. He emphasized that the economy has not been automated enough to facilitate these reductions.

He pointed out that the Ghana Private Road Transport Union (GPRTU) sets transport fares manually. This process involves consultations and calculations, delaying fare reductions even when fuel prices drop.

Dr. Mensah advised Ghanaians to expect stability rather than immediate price drops. He believes stability can improve living standards over time.

Meanwhile, commuters in Nungua and Tema are frustrated by unchanged transport fares despite lower fuel prices.

Mr. Asare Nyako, a civil servant, shared his concerns about daily transport costs remaining high at nearly GH¢26. He expressed surprise at the lack of action regarding this issue.