Cedi Gains and Fuel Drops May Not Decrease Prices, Economist Warns

Economist, Dr. Samuel Worlanyo Mensah has revealed that recent appreciation of the Ghana Cedi and a reduction in fuel pricesmay not translate into lower prices for consumers due to Ghana’s economic management.

In an interview, Dr. Mensah explained, “While the Cedi’s improvement and lower fuel prices are positive signs, the impact on consumer prices is not automatic. Our economic management is still largely manual, and decisions are not always based on real-time data and automated systems.”

He reteirated that Ghana needs to adopts a more automated and data-driven approach to economic analysis and policy-making.

Dr. Mensah further noted that the manual process often leads to delays and inefficiencies in implementing policies that could directly benefit consumers. “For instance, the reduction in fuel prices should ideally lead to lower transportation costs, which in turn should reduce the prices of goods and services. However, this chain reaction is not happening as swiftly as it should,” he said.

The economist called for a more systematic and technology-driven approach to economic management, suggesting that this could help bridge the gap between macroeconomic indicators and the everyday economic experiences of Ghanaians. “We need to leverage technology to make our economic management more responsive and efficient,” Dr. Mensah concluded.

Currently, the Bank of Ghana is quoting the dollar to buy at GHC13.44.