‘Inflation of 5.2% means nothing’ to someone spending 12 hours travelling to Kumasi – Bokpin

Story By: Deborah Adorsu

Ahead of the budget presentation, Economics Professor Godfred Alufar Bokpin says inflation of 5.2% means little to someone spending up to 12 hours travelling to Kumasi, arguing that improving economic indicators must translate into better living conditions.

Speaking in an interview, he acknowledged government’s progress in stabilising the economy. But warned that its heavy reliance on spending cuts was delaying the benefits for Ghanaians.
He also pointed to the difficulties commuters face on the Accra-Tema Motorway.

For people confronting such challenges, he said, lower inflation can be difficult to appreciate.

His comment comes ahead of the 2027 Budget, scheduled for presentation on Thursday, November 12.

Finance Minister Dr Cassiel Ato Forson is expected to outline government’s New Economy programme, a four-year plan focused on productive investment and economic transformation.

The Minority in Parliament has questioned the programme’s financing demanding accountability for existing flagship initiatives.

It has also challenged the gap between falling inflation and household living costs.

Prof Bokpin said government’s approach had helped cool the economy by reducing demand.

However, it had not sufficiently expanded the country’s constrained capacity to produce.

He argued that a country with major infrastructure gaps needs spending to support growth.

Despite those concerns, Prof Bokpin said government had broadly delivered on its stated objective of restoring stability during its first two years.

He cited falling inflation and interest rates, alongside the cedi’s relative resilience despite renewed pressure.

The next phase, he indicated, would move from stabilisation towards economic transformation.