The cost of living, a cyclical phenomenon linked to price inflation, is a global reality. In Guinea, the authorities are working to mitigate the impact on households and the standard of living of the population.ns.
If households denounce a low content of the household basket due to a surge in the prices of basic foodstuffs, it should be noted that this is a global phenomenon. And Guinea is no exception to this reality.
In an interview given to our editorial staff, Mamady Fatoumata Keita, economics teacher, thinks she knows the causes of the high cost of living that Guineans face.
« The cost of living which is inflation is caused by several factors. The first cause is demand, when demand is greater than supply, prices will increase: it’s automatic. The second thing is the costs associated with importing. When all our products which are consumed here in Guinea, for example if I take rice which is the first product consumed in Guinea which is not produced here, are imported. Because one of the factors related to the importation of rice increases, such as customs fees or taxes or even where they buy their goods. When just one of these things increases, there will be inflation. » explained M. Keita.
A few months ago, measures were taken to combat the high cost of living through the government program banning the export of certain basic necessities. A decision which is not the solution for Mamady Fatoumata Keita.
« The cause, was the measure followed correctly? This is also the problem, because it is not only a question of giving measurements, but also of ensuring execution. In my opinion, it is not a good policy to ban the export of our products. Protectionism is not the right solution “, he argued.
Furthermore, Mamady Fatoumata Keita thinks that the solution would be to develop a good support policy to encourage them to sell on Guinean territory.
« The good solution is national production since you are going to protect the exit of goods, but what will its traders who are used to selling their product abroad, who cannot come and sell it inside here since they invested a lot of money in the production of its goods. We need a support measure to encourage them to sell domestically rather than selling abroad. But if there is no accompanying measure, you will prohibit according to you it is prohibited, but people will always be tempted to do it fraudulently to be sold abroad. », made the economics professor understand.
Finally, regarding inflation in Guinea which is said to be in double digits, the economics professor thinks that this situation is unacceptable, given the resources available to Guinea.
« Inflation is around 12%, my last information was at 12% and this is not acceptable in reality. Given the resources that Guinea has available, given everything that Guinea can have in terms of economic policy, budgetary policy, monetary policy to stabilize inflation. But around 12%, it’s not good. In other countries, inflation is in single digits. At one point, Guinea had single digit inflation. This was appreciated since it was noticed immediately in the housewife’s basket. But double-digit inflation is not obvious, it is not the right policy that is needed. So, we must do everything to ensure that it is brought down to 5 or 6% initially, perhaps to 2%, that is a good policy, but 12% is exaggerated.é,” declared the economist
Sam Bantignel Barry
