Inflation Drops To 8.8%

Year-on-year inflation as measured by the Consumer Price Index (CPI) of the Ghana Statistical Service (GSS) stood at 8.8 percent in December 2012, down from the 9.3 percent recorded in November 2012.

Dr Philomena Nyarko, Acting Government Statistician, who released this on Wednesday to journalists in Accra, said the slip was about 0.3 percentage points higher than government’s set target of 8.5 percent.

Despite the increase in the general price levels of goods and services in December, the rate of increase was marginal compared to the figure in November.

The rate of inflation for December 2012 is the percentage change in the CPI over the twelve-month period from December 2011 (371.2) to December 2012 (404.0).

Dr Philomena Nyarko said the monthly change rate for December 2012 was 0.7 percent compared to 0.5 per cent recorded in November.

In the recent survey, the food and non-alcoholic beverages group recorded an average year-on-year inflation rate of 3.9 percent, the same as recorded in November 2012. Eight subgroups of the food and non-alcoholic beverages group recorded inflation rates above the group’s average inflation rate of 3.9 percent.

The non-food group also recorded a year-on-year inflation rate of 11.6 percent. Six subgroups recorded year-on-year inflation rates above the group average rate.

Transport recorded the highest rate of 20.6 percent followed by education with 16.5 percent while the alcoholic beverages, tobacco and narcotics sub-group recorded 16.5 percent.

Inflation was lowest in the communications subgroup.

At the regional level, the year-on-year inflation rate ranged from 6.2 percent in the Upper East/Upper West regions to 11.2 percent in the Greater Accra region.

Three regions (Greater Accra, Central and Northern) recorded inflation rates above the national average of 8.8 percent.

In the greater part of 2012, the Central Region emerged as the most expensive region to live in.