Inflation drops marginally first time in months

Inflation rate has dropped marginally for the first time in many months. According to the latest figures released, inflation for the month of August stood at 17.3 per cent, -0.7 percentage points lower than the July rate of 17.9 per cent.

The Government Statistician, Dr Philomena Nyarkoh, who made this known at a news conference in Accra Wednesday, attributed the phenomenon largely to the appreciation of the cedi against the dollar in the month under review.

Food and non-food components

Aside the cedi appreciation, she attributed the decline to the combined drop in the rate of food and non-food components of the inflation basket.

She said food and non-alcoholic beverages recorded a year-on-year inflation rate of 7.7 per cent, a 0.1 percentage point higher than the 7.6 per cent recorded in July 2015.

“The main price drivers for the food inflation rate were mineral water, soft drinks, fruits and vegetables, recording 13.5 per cent, with coffee, tea and cocoa recording 12.9 per cent, while food products recorded 11.4 per cent.

“Sugar, jam, honey, chocolate and confectioneries also recorded 11.7 per cent, while meat and meat products recorded 11.2 per cent, with milk, cheese and eggs recording 10.0 per cent, whereas vegetables also recorded 10.9 per cent,” she added.

Non-food groups

For the non-food groups, Dr Nyarkoh indicated that they recorded a year-on-year inflation rate of 23.4 per cent in August 2015, compared to the 24.6 per cent recorded in July 2015.

Six sub groups: housing, water, electricity, gas, and other fuels, being the main drivers of the non-food groups, recorded an inflation rate of 23.4 per cent.

Recreation and culture recorded the highest inflation rate of 25.8 per cent, followed by education with 25.6 per cent, transport, 25.3 per cent; clothing and footwear, 25.1 per cent; with communication recording the lowest inflation rate.

The year-on-year inflation rate for imported items stood at 18.1 per cent for August 2015, which was 1.1 percentage points higher than that of the locally produced goods of 17.0 per cent.

At the regional level, Ashanti, Greater Accra and Central regions recorded inflation rates higher than the national average of 17.3 per cent, with the Upper West Region recording the same inflation rate as the national average of 17.3 per cent.

The Ashanti Region recorded the highest year-on-year inflation rate of 18.9 per cent, while the Northern Region recorded the lowest rate of 13.8 per cent.


Source: Graphic