Inflation down again to 19.65%

Figures released by the Ghana Statistical Service (GSS) indicates that year on year inflation measured by the Consumer Price Index (CPI) has declined significantly to 19.65% for the 12-month period end August 2009 from 20.50% recorded for July 2009.

The CPI has been primarily driven by the non-food sub-sector, which accounts for the 55.09 % of the weighted basket used by the Ghana Statistical Service (GSS) in computing the Consumer Price Index (CPI). In August 2009 the inflation for the non-food group was 23.91% as against 14.75% for the food group. The corresponding figures for July 2009 were 24.48% and 15.17% for non-food and food respectively.

The non-food inflation was generated mainly by the recreation and culture (87.70%), health (48.05%), and furnishing, household equipment among others has (36.30%); the subgroup with the lowest annual change rate were oil and fats (3.02) and the housing, water and electricity subgroup with (3.23%).

The highest inflation for the food group includes foods not elsewhere classified such as fish; milk, cheese and eggs; fruit; vegetables, potatoes and other tuber vegetables; and mineral waters, soft drinks and juices.

The rate of inflation which has been higher in the urban areas than in the rural areas for seven consecutive months from February to August 2009 was 22.37% and 18.86% respectively. However, urban/rural inflation gap is gradually decreasing.

Inflation rates recorded in the regions range from 33.29% for Upper East and Upper West Regions being the highest to 14.48% for Eastern Region, the lowest. Apart from Upper East and Upper West regions with the highest rate of inflation, two other regions recorded inflation rates above the national rate of 19.65%.

They are Central Region 28.85% and Ashanti Region 23.53%. The rest Western Region 19.28%, Volta Region 18.22%, Northern Region 17.15%, Brong Ahafo Region 17.14% and Greater Accra Region 16.77%.

Analysts have indicated that seasonal trend shows September and October with lowest monthly change rate while in long term inflation has a seasonal trend of lowest figure in the same period. If the trend continue as it were then it is likely the nation will again experience a decline in September 2009 inflation figure.

By Fred SARPONG