Single Digit Inflation is real and attainable

Accra, June 12, GNA - Finance Minister Dr Kwabena Dufuor has called on critics who say government's efforts at attaining single digit inflation would hamper economic growth to take a second look at the country's historical records.

"In March 2001 when inflation was between 42 and 43 per cent and in December when it was 21.5 per cent, what happened to growth? Did it suffer? The answer is no," he said.

Dr. Dufuor was speaking to journalists on Thursday during a working visit to the Controller and Accountant General Department (CAGD) in Accra.

"The country's currency is the most stable currency in Africa. A stable currency and the fact that the borrowing requirements are going down show that inflation is going down," he said.

Dr. Dufuor disproved the criticism that implementation of the Single Spine Salary Structure (SSSS) pay policy would make the attainment of single digit a mirage.

"If we were to pay everything at a go whether we have the money or not, it would require that we borrow or print monies to pay. Government has no intention of printing money to pay the SSSS," he added.

Dr. Dufuor said that government would use the revenues it collected to pay the SSSS and gave the assurance that the payment would not affect inflation.

"We are going to manage the economy prudently such that the implementation would not affect inflation," he said.

Dr. Dufuor said that single digit inflation was both real and attainable adding "we would get there before September this year. It would be real; we would both attain and sustain it".

GNA