Falling Inflation Won’t Always Mean Cheaper Food – Financial Expert
Ghana’s inflation may be easing, but that does not guarantee cheaper food prices in the market, according to Financial expert.
Dr. Christian Tachie-Djan , a financial expert , says while inflation has dropped to single digits for the first time in eight months, food prices do not always follow the same trend.
He explains that agricultural seasons play a crucial role. For instance, during the harmattan, limited irrigation leaves farmers dependent on rainfall. When the rains return, crops grow in abundance, forcing traders to cut prices to avoid spoilage. This can temporarily make food cheaper.
However, Dr. Djan cautions that lower inflation does not automatically mean lower market prices. Rather, it signals that the rate of price increases is slowing — not that prices themselves are falling.
He adds that food prices are shaped by multiple factors beyond inflation, including demand and supply, storage capacity, and the perishability of produce.
“As much as lower inflation is good news, consumers should not expect every drop in the rate to translate into cheaper food,” Dr. Tachi stressed. “Market forces will always determine the final price.”
