Finance Minister hails decline in inflation rate

Finance Minister Dr Kwabena Duffuor on Wednesday attributed the continuous decline in the rate of inflation to prudent management of the economy.

Inflation rate for December fell to 8.58 from 9.08 in November 2010.

“The steady decline in the inflation rate is attributed principally to the continued monetary restraint, prudent fiscal management by the government, good agricultural policies (causing good food harvest) and stable commodity prices,” Dr Duffuor said in a statement issued by the Ministry of Finance and Economic Planning in Accra.

The Sector Minister dismissed claims that the drop was as a result of lack of spending on the part of government, adding that President Mills’ administration had met all its financial obligations and also met a substantial part of the huge arrears to contractors.

Dr Duffuor said the decline in the rate of inflation was a testimony to the stability agenda being pursued by the Government, adding that fiscal year 2011 and the medium term would see a strong stimulation of growth and job creation.

“We’ll pursue a broad based and job-creation economic growth agenda to remove Ghanaians out of poverty,” the Sector Minister said.

Source: GNA