Transportation cost not to blame for astronomical food prices – Agric Minister

Minister for Food and Agriculture, Dr. Owusu Afriyie Akoto, says the high cost of transportation is not to blame for soaring food prices.

The latest figures show inflation for October is more than 40% driven largely by food and transportation prices.

Food inflation recorded the highest rate among all the components as against non-food inflation according to the Ghana Statistical Service.

Many have suggested that the astronomical rise in the prices of petroleum products is taking a toll on transportation rates, which is then borne by the consumer.

But answering questions in Parliament, the Minister said the analysis of the Ministry does not point to transportation costs as the cause of the hikes.

He however fell short of explaining exactly what is causing the increase.

The Minister also defended his outfit’s plans to bring food from the local areas to Accra in order to compete with the high cost of food on the market.

The increase in food inflation indicates a jump of more than 3 percent from the previous rate of 37.2%.

Addressing the media, Government Statistician,  Prof Samuel Kobina Annim explained that all items in the component for calculating the rate of inflation recorded an increase.

“For the month of October, Food inflation was 43.7%. Last month’s Food inflation was 37.8%. A careful study of the figures show that month-on-month Food inflation was 3.2%.” he said.

source: citinewsroom.com