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Momodou
Denmark
11634 Posts |
 Posted - 18 Jan 2008 : 21:28:37
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Food Price Inflation Now 9.5%
Central Bank
By Bubacarr K. Sowe
Food price inflation has accelerated from 0.25 per cent in December 2006 to 9.46 per cent in December 2007, the Monetary Policy Committee (MPC) of the Central Bank of The Gambia revealed on Friday in a release issued at a news briefing. Non food prices, on the other hand, increased by 1.55 per cent.
According to the release, “Core inflation which excludes prices of energy and volatile food items also accelerated from 0.82 per cent in December 2006 to 6.02 per cent at end December 2007.” The statement cautioned that inflationary pressures, which have risen in many countries, increase the risk of imported inflation in the Gambia.
The release also stated that the inter-bank foreign exchange continued to be vibrant and in the year to end-November 2007, transaction volumes increased to D36.5 billion, representing an increase of 9.4 per cent from a year ago. The Bank sees this as a reflection of strong inflows from inward remittances, travel income, foreign direct investment and re-exports.
According to the release, last year the Dalasi appreciated in nominal terms by 19.6 per cent against the Dollar, 9.3 per cent against the Euro and 17.5 per cent against the Pound Sterling.
The Bank forecasts a stable Dalasi in the medium term “premised on continued implementation of prudent monetary and fiscal policies, increased foreign currency inflows and the likelihood of reduced demand for foreign exchange by Government in light of the HIPC and MDRI debt relief”. On the banking sector, the MPC said the sector continues to function efficiently. It said: “Banks have sufficient capital and liquidity to meet their commitments.”
The MPC indicated that the industry’s assets rose to D10.0 billion in November 2007, or by 3.4 per cent from end-September 2007 and that the private sector credit increased from D2.5 billion in November 2006 to D2.7 billion in November 2007, representing a modest increase of 5.1 per cent.
The stock of domestic deb, as at end-November 2007, declined to 5.6 billion dalasis or by 3.8 percent from end September 2007. The release pointed out that the maturity structure of Treasury bills, which accounts for 84.7 percent of the debt stock, continued to move from the short to the long end.
It is the view of the MPC that the near term outlook for the Gambian economy is favourable, macro economic fundamentals remain strong and the appreciation of the Dalasi is expected to contain inflationary pressures. It noted: “Recent growth performance indicates that the Gambian economy proved remarkably resilient over the past three years. Growth averaged 6.4 per cent in real terms between 2003 and 2006.” Growth in 2007 is estimated at 6.9 per cent. The MPC was however quick to caution that “There are risks to the forecast, particularly relating to the marked increase in oil and food prices.”
Source: Foroyaa Newspaper Burning Issues
Issue No. 006/2008, 14 – 15 January 2008
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A clear conscience fears no accusation - proverb from Sierra Leone |
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toubab1020
12306 Posts |
Posted - 19 Jan 2008 : 01:03:57
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Great! .......All this uninteligable waffle means that food costs 9.5% more.
"Core inflation"........"macro economic fundementals" words that no one understands,people nod their heads wisely in case others think they are not so bright,its all like the Kings new suit of clothes.
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 19 Jan 2008 14:55:06 |
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jambo
3300 Posts |
Posted - 19 Jan 2008 : 15:36:54
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how can people sustain this, the cutbacks will begin with people not affording school fees, then food, then rent |
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Sister Omega
United Kingdom
2085 Posts |
Posted - 22 Jan 2008 : 20:00:23
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"Times get so hard even rat a cut bottle it's a tricky situation which the poor man can't handle!" to quote Gregory Issacs, Reggae Cool Ruler.
Yes I agree with you Toubab1020 what we need is a proper breakdown so that we can all understand why food inflation is 9.5%. One question springs to mind is this a consequence of food imports raising with a Global recession looming? Or is it a consequence of Gambia not producing enough food to feed itself. Come on Foroyaa give us a comprehensive breakdown into the reasons for higher food inflation along with some solutions to how these prices can be brought down. In other words do some more in-depth research to educate the people.
Peace Sister Omega |
Peace
Sister Omega |
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gambiabev
United Kingdom
3091 Posts |
Posted - 22 Jan 2008 : 20:03:48
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| There is a village near Kwinella, whose name I cant remember (old age) that attempts to be self sufficient in food. I think that is a fantastic aim. Can anyone shed light on the village name and give more details? |
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