Inflation dropped marginally at 10.3 per cent

Accra, Dec. 8, GNA - The annual rate of inflation for November 2006 dropped marginally at 10.3 per cent, but the Acting Government Statistician says the single digit target rate is still in limbo. Professor Nicholas N. N. Nsowah-Nuamah, who made the announcement on Friday, said the single digit attainment would be possible only when prices of goods in the basket came down further.

"It is difficult to put a time frame and I can't say for sure that it would be achieved before the year ends," he explained. The November inflation rate dropped 0.2 per cent from the October rate of 10.5 per cent.

The National Consumer Price Index (CPI) for November was 455.40 points from 455.19 points in October 2006. The food and beverage group contributed 0.09 points to the change while the non-food groups contributed 0.12 points to the change in the index.

Within the food and beverage group, smoked herrings contributed the highest of 0.13 points to the upward change in the index whilst ground maize (-0.07 points) and banku and stew (-0.04 points) were the largest downward contributors.

For the non-food group, household goods contributed to the upward movement of the index with 0.08 points whilst transport and communication, and clothing and foot ware groups had the largest downward effect with -0.02 points each. Petrol and shirt materials gave -0.02 and -0.01, respectively, being the major contributors. Prof. Nsowah-Nuamah said the monthly change/rate of inflation (that is the CPI) of November 2006, compared with that of the previous month was 0.0 per cent. This meant that prices were relatively stable in November.

The rate of inflation has consistently been dropping for the last four months.

In July 2006, it dropped from 11.4 per cent to 11.2 per cent in August; 10.8 per cent in September and 10.5 per cent in October.