An economist analyst at Databank, Nii Ampa-Sowah, says the recent increase in fuel prices will not have a significant impact on the projected rate of inflation for the year. Government last Friday adjusted fuel prices by 30% which is expected to affect food prices and transport fares. Finance Minister Dr Kwabena Duffour put government’s year-end projection at between 16 and 18 when he presented the 2009 budget to Parliament last January. But on the back of the recent hikes, there were fears that government would not be able to achieve that target. Economists at Databank however believe last Friday’s increase will not have any significant impact on the projected figure. Head of Research at Databank Research, Nii Ampa-Sowah, said while food and transport fares would be affected by some margin, their cumulative impact will not be devastating, especially, in the short term. The Databank end-of-year inflation target is however a far cry from government’s projection of about 12 percent which has been described as overly optimistic. Mr. Ampa-Sowah however hinted that the expected drop in inflation in the second half could be delayed by the increase in the fuel prices. Story by Fiifi Koomson/Joy Business