Ghana’s inflation, why not more of an issue?

Looks like inflation rate is actually coming down to around 15%, but past several years it has been above 20%.  In 2007 the cedi was redenominated and reissued, basically at 1 cedi per dollar.  The cedi now is at about 3 per dollar.  So the dollar has gone up 300% in just 7 years… implies about a 16% inflation rate if dollar has not also been appreciating or depreciating.    Now, an inflation rate of 15% annual is high by world standards in the 2000s….  why is there so little discontent?

GDP per capita growth, in real terms, has been solid 3% a year or more. Who cares about inflation in that context?

About mkevane

Economist at Santa Clara University and Director of Friends of African Village Libraries.
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