Rice and oil have seen reductions by GH¢200 due to cedi appreciation – GUTA

The Head of Economic and Business Bureau at the Ghana Union of Traders Association (GUTA), Charles Kusi Appiah Kubi, has noted that prices of goods and services have seen some reductions to reflect the current performance of the cedi.

According to him, the prices of certain commodities, such as rice and oil, which were affected by the depreciation of the cedi, have started to decrease.

The price of the 50kg rice, for instance, he said, is currently selling at GH¢750 down from the previous GH¢950, signifying a GH¢200 reduction.

“So, even within the food commodities, we see a drop in prices. We said that for a drastic reduction in prices, we need two months to do that, but even within that time, prices are dropping. 50kg of rice, previously selling at about GH¢950, is now selling at GH¢750. That is GH¢200 down. You take general oil, GH¢780, some are now selling at GH¢650,” he was quoted by 3news.com.

Appiah Kubi noted that GUTA has considered the performance of the cedi and has decided to relieve some burden off customers.

He added that other factors also contribute to the price buildup of goods and services.

“The point is this, we understand the dynamics within the market and as integral part in terms of economic revamp we have a responsibility, one of them is to ensure that we safeguard our gains, that we don’t just jump into the bandwagon and lose out, that was why we said give us some months so that we can better have predictions of what is going to happen tomorrow.

“When forex goes up high, it affects us directly. Forex has been the weakest link in terms of capital gains. Any time there is a drop in forex, it has a direct effect on us, but that is also to say that forex is not the only determinant in our price build-up,” he added.

He mentioned the cost of borrowing, fuel prices, and taxes as part of the effort to contain prices.

“There are a lot of factors that we look at too, fuel, cost of borrowing, consumption tax, which also adds up to price build up, we also look at cost of procurement and cost of replacement, and then we come up with the prices that will commiserate with the forces on the market. So we have done this arithmetic and we have come to the conclusion that at this point, it is good to extend some gains to our consumers, that is why you see prices dropping,” GUTA said.

The cedi has appreciated against major trading currencies in the last few weeks. Due to this, consumers have asked for the reduction of the prices of goods to reflect the appreciation of the currency.

SSD/MA