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Home Business Agribusiness

Incoming Mahama Administration Must Prioritize Food Inflation Control – Prof. John Gatsi

8 months ago
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Incoming Mahama Administration Must Prioritize Food Inflation Control – Prof. John Gatsi

Professor John Gatsi, Economist and Dean of the University of Cape Coast Business School, has called on the incoming John Mahama administration to prioritise efforts to reduce food inflation, which he describes as a key driver of economic distress for households.

His comments follow data released by the Ghana Statistical Service, showing food inflation accelerated to 25.9% in November 2024, up from 22.8% in the preceding month.

The rise reflects ongoing supply-side constraints and heightened costs within the agricultural sector, further straining household incomes.

Speaking in an interview on Tuesday, Prof. Gatsi stressed that policymakers must address the structural challenges underpinning food production to achieve broader disinflationary objectives.

“It is very clear that food inflation is an issue. The next administration should deploy its policymakers to address food inflation. That will require stepping up production of food items that are currently constrained within the supply chain,” he said.

The economist underscored the need for targeted agricultural investments, urging the Ministry of Agriculture to reassess its operational strategies.

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He noted that channeling financial resources into rural economies—where much of the food production occurs—will be pivotal in addressing both short-term inflationary pressures and longer-term growth objectives.

“It is important that the new administration prioritises how finances are directed to the rural economy, where most food production takes place. For me, that is key,” Prof. Gatsi remarked.

Investment in agriculture, he argued, will stimulate growth across interconnected sectors of the economy, potentially reducing inflationary pressures while enhancing resilience within the food supply chain.

The latest inflation figures underscore the fragility of Ghana’s food systems, with rising costs continuing to outpace wage growth and intensifying financial strain on low- to middle-income households.

Tags: food inflationIncoming Mahama Administration Must Prioritize Food Inflation Control - Prof. John GatsiJohn MahamaProf John GatsiUCC

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