Economist talks about raise in salaries for Ghanaians to cope with high cost of living

Economist Dr Evans Nunoo says with the cost of living rising, government must find ways to cushion the citizenry.

According to him, the cost of living is on the rise, to the worry of Ghanaian households.

Prices of food, fuel and transportation and other basic consumer products are pushing average families on the edge of survival.

The current economic challenges are exacerbated by the ongoing war between Russia and Ukraine which has led to rise in global crude oil prices.

The high rate of inflation is a major worry.

Dr Evans Nunoo said until salaries are adjusted, people will have issues coping with the current economic hardship.

“Our standard of living has not been affected. This is because we are yet to implement the E-Levy to make sure the expenditures we are to do with that revenue could be done. The fact that it has stabilised for a week or two, does not mean there has been a drastic change in the way people are living.

“Until salaries are increased, there is no way standards of living can be improved. Now, people’s purchasing power has reduced drastically through inflation and taxation policies,” he said.

With the rising fuel prices, it has become relatively cheaper to use public transport for long-distance journeys.

Dr Nunoo believes this can help owners of private vehicles to save.

“I have advised that it doesn’t make a lot of sense to drive all the way from Kumasi to Accra alone. For long-distance journeys why won’t you park and use commercial vehicles?

“We have luxurious ones which are affordable. Talking about safety, there are some transport companies that record zero accident cases. It might even be safer than driving yourself.

“Going to a busy place like Adum, it is convenient to go by commercial transport. If you are going to Kejetia to go shopping, there is no need to drive there.

“The place is full of traffic and you know being in traffic consumes more fuel than running around,” he said.

Source: myjoyonline.com

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