The Head of the Economic and Business Bureau at the Ghana Union of Traders Association (GUTA), Charles Kusi Appiah Kubi, has noted that the prices of goods and services have seen some reductions in response to the recent appreciation of the cedi.
According to him, prices of certain commodities such as rice and cooking oil, previously affected by the depreciation of the cedi, have started to decline.
“For instance, a 50kg bag of rice, which used to sell for GH¢950, is now going for GH¢750, representing a GH¢200 reduction,” he said.
“Even within the food commodity space, we are seeing a drop in prices. We had initially projected that a significant price reduction would take up to two months, but even within that period, prices have already begun to fall. General cooking oil, which used to sell for GH¢780, is now available for GH¢650,” he explained.
Appiah Kubi stated that GUTA has taken into account the improved performance of the cedi and decided to ease the burden on consumers.
He, however, emphasised that other factors also influence the pricing of goods and services.
“We understand the dynamics of the market, and as key players in the country’s economic recovery, we have a responsibility. One of our goals is to safeguard the gains we’ve made. That’s why we asked for some time to better predict future trends,” he explained.
“When the foreign exchange rate rises, it affects us directly. Forex volatility has been the weakest link in terms of capital gains. A drop in forex has a direct impact on us, but it’s important to note that forex is not the only factor in our pricing model.”
He cited the cost of borrowing, fuel prices, and taxes as other components contributing to the final price of goods.
“There are many variables we consider, fuel, interest rates, consumption taxes, procurement and replacement costs, all of which add to the price build-up. After factoring in these elements, we have concluded that it is appropriate to pass on some of the gains to our customers. That’s why prices are dropping,” Appiah Kubi stated.
The cedi has appreciated against major trading currencies in recent weeks, prompting calls from consumers for prices to reflect the currency’s improved value.
SSD/MA