Business News of Tuesday, 19 February 2013
Source: Citi FM
The Centre for Policy Analysis (CEPA) has predicted that Ghana is not likely to maintain single digit inflation in the coming months.
CEPA believes the country’s failure to maintain the single digit will not be due to the recent increases in the prices of petroleum products, but rather due to the revision of the goods and services used to calculate inflation.
The Ghana Statistical Service has announced the new revision will take off next month.
The Executive Director of CEPA, Dr Joe Abbey, told Citi Business News that February is likely to record single digit inflation but the following months may not.
“Food inflation led the way in getting to single digit so there are already indications that when we get the new basket which is more relevant to our current living conditions not to our living conditions 10 years ago that the inflation could jump above single digit. So again to me, there is no mystery about it- as a statistician this is something we should expect,” he said.
He added “if in future, because of this the basket is tainted for five years -that is the way forward. I will be surprised if the new basket still is talking about single digit with or without the withdrawal of fuel subsidies.”