Business News of Friday, 11 September 2009
Accra, Sept 11, GNA - The inflation rate dipped to 19.65 per cent in August as a result of lower food prices, the Ghana Statistical Service (GSS) said on Friday.
The figure represents a decline of 0.85 percentage points from the inflation rate of 20.50 per cent for July. Government Statistician, Dr Grace Bediako, said the rate of inflation for August was primarily driven by the non-food sub-sector. The non-food group registered an inflation of 23.91 per cent as against 14.75 per cent for the food group. "The fall in prices in the food category is helping to contain the overall inflation and has been responsible for the lowering of the rate," Dr Bediako said.
Trends from the past three years indicate that August, September and October are usually periods of declining inflation. "Unless something out of the ordinary happens, we can safely say the rates might go down further in September and October," Dr Bediako said.
As usual with the trend the rate is likely to go up in November and December because of high spending before and during the Christmas festivities. "Looking at the trend, there is no reason to suggest that rate will go down during the last two months of the year unless food prices hold out," she added.
Government is projecting an end of year inflation of 14.5 per cent but the Centre for Economic Policy Analysis (CEPA) is, however, forecasting 20.5 per cent inflation at the close of the year. Eastern Region registered the lowest inflation of 14.48 per cent while the Upper East and Upper West regions recorded the highest of 33.29 per cent. The urban and rural inflation for August 2009 was 22.37 per cent and 18.86 per cent respectively. 11 Sept. 09