“The year-on-year inflation, which was 54.1 per cent in December of 2022, has seen three consecutive reductions in 2023 – 53.6 per cent for January, 52.8 per cent, in February, and 45 per cent for March,” said Dr Joseph Obeng, leader of GUTA.
“On the other hand, the exchange rate for the local currency against the dollar, which was GHS13.09 to $1 as of December 1, 2022, has seen some decline over time, with the latest being GHS10.92 to $1 for April 12.”
“In light of this, GUTA entreats all members of the business community to respond positively to the changing trend and adjust prices to reflect the exchange rate,” added Dr Obeng
Dr Obeng expressed appreciation of GUTA to the Government and the Central Bank for efforts at bringing down inflation and exchange rates.
“Indeed, we are very appreciative of the Government's efforts, and hope that it will bring relief to businesses and lead to the economic transformation we all cherish and desire as a nation,” he said.
The trade union leader, however, called on government to continue with the efforts and take advantage of the reduction of the exchange rate to further reduce inflation and other costs of doing business in the country.
He also said that it was important for all stakeholders to join efforts to manage unnecessary speculation, which could reverse the positive gains so far achieved.
Many Ghanaians resorted to walking long distances and riding bicycles to endure the inflationary pressures witnessed in the early months of last year.
“Some people had to park their private vehicles and used commercial ones (trotro) to and from work while others used their private vehicles for commercial purposes, especially after work,” Dr Obeng recounted.
Businesses were also affected by inflationary pressures, as the hikes in the prices of goods and services led to a reduction in capital, affecting the profit of both small, medium, and large companies.
This made traders, led by GUTA, closed down shops in October 2022, in protest of the rise in inflation, depreciation of the Cedi, and high lending rate due to the increase in the policy rate by the BoG, but reopened two days later.