“Bleeding” Economy amid Increase in Prices Of Goods & Services Prices

Prices for basic foodstuffs are rising in Ghana and Africa, as consumers stock on essentials and sellers seek profits amid the coronavirus pandemic. This is logic according to the law of supply the higher the price of a commodity, the higher the quantity supplied. Rationally, a supplier would want to supply more and increase their turnover. Across the continent, people are calling for governments to intervene and rescue consumers amid the current pandemic. The food we bought last week for 10Ghs ( US$1.8 ) increased to 17Ghs ( US$3 ) and this is a problem for the ordinary citizen. This trend is not only in the capital but across the nation.

A couple of weeks ago, increment in transport fares was announced by the transport association in and it resulted in widespread anger in the country. Reacting to the transport fares increase, traders also increased prices of food items including rice, sugar and cooking oil and other foodstuffs in our local market

Wadataonline believes numerous factors contributed to price hikes in the country. Having said that, there is undeniably a correlation between recent price hike of goods and services and the outbreak of COVID-19 vis-a-vis the partial lockdown as well as an increase in transport fares. Sellers are simply capitalising on the crisis and make an excessive profit. There is also an increase in demand and impulse buying by consumers who are sceptical due to expectations of future increase in prizes.

Source: wadataonline.com/Issa Abubakar