Declining inflation eases pressure on consumers, boosts sales – GUTA
5th March 2026
The Executive Secretary of the Ashanti Business Owners Association and Head of the Business and Economic Bureau of the Ghana Union of Traders Association (GUTA), Charles Kusi Appiah Kubi, says the continued decline in inflation is providing relief to consumers and helping businesses record improved sales.
According to him, the slowdown in the pace of price increases is helping preserve the disposable income of many Ghanaians and strengthening their purchasing power.
His comments follow the latest figures released by the Ghana Statistical Service, which show that inflation dropped to 3.3% in February, a development that has been welcomed by many within the business community.
Speaking on JoyNews Desk on Thursday, March 5, Mr. Appiah Kubi explained that inflation plays a key role in determining how much consumers can spend on everyday goods.
“Inflation defines the rate at which the prices of selected items within the inflation basket increase,” he said. “When inflation rises, it reduces the disposable income of the ordinary Ghanaian.”
He added that the situation becomes more difficult when wages do not rise in tandem with increasing prices.
“In a situation where inflation does not correspond with salary increments, it weakens the purchasing power of the ordinary Ghanaian to buy food and other essential items,” he explained.
However, Mr. Appiah Kubi noted that the recent slowdown in inflation is easing pressure on consumers.
“When we see a reduction in inflation, it means the rate at which prices would have increased is slowing down. That helps sustain the disposable income of the ordinary Ghanaian and offers some level of relief,” he said.
He also indicated that the easing inflation has begun to influence market prices, with several goods becoming relatively cheaper.
According to him, some farmers have even raised concerns that the prices of their produce have dropped significantly.
“You can hear most farmers complaining that they have a lot of farm produce and the prices have reduced. The price they begin selling at is sometimes far below their cost of production,” he stated.
Despite those concerns, Mr. Appiah Kubi said businesses generally benefit when consumers have the financial capacity to purchase goods.
“Our joy as businesses is when consumers are able to patronise what we sell,” he said. “Over the past year and more, we have seen the prices of many items decline, and that has helped increase some level of sales within the business community.”