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Business News of Saturday, 16 February 2019

Source: Graphic.com.gh

January inflation lowest in six years

The average change in the price levels of consumer goods and services measured by inflation dropped to its lowest in six years, the Ghana Statistical Service (GSS) has reported.

The inflation rate for January 2019 was 9.0 per cent, which was 0.4 percentage points lower than the 9.4 per cent recorded in December 2019. The monthly change rate for January 2019 was 1.0 per cent.

The January 2019 rate is the lowest after the 8.8 per cent recorded in January 2013.

The acting Government Statistician, GSS, Mr David Kombat, said a combined pressure from both the food and non-food inflation basket contributed to the decline of the rate in January 2019.

The food inflation rate for January 2019 was 8.0 per cent compared with 8.7 per cent recorded in December 2018.

The non-food inflation rate for January 2019 was 9.5 per cent compared with 9.8 per cent recorded in December 2018.

The main “price drivers” for the non-food inflation rate were transport (13.4 per cent), clothing and footwear (12.8 per cent), recreation and culture(12.7 per cent), furnishing, household equipment and routine maintenance (11.2 per cent) and miscellaneous goods and services (9.6 per cent).

On the other hand, the “price drivers” for the food inflation rate were coffee, tea and cocoa (12.4 per cent), fruits (10.0 per cent), meat and meat products (9.8 per cent) and mineral water, soft drinks, fruits and vegetable juices (9.3 per cent).

Mr Kombat said the non-food inflation rate of 9.5 per cent was 1.5 percentage points higher than the food inflation rate of 8.0 per cent.

The inflation rate for imported items was 10.8 per cent in January 2019 compared to the 11.1 per cent recorded in December 2018, while the inflation rate for locally produced items was 8.3 per cent in January 2019 compared to the 8.7 per cent recorded in December 2018.

At the regional level, four regions - Upper West, Brong Ahafo, Western and Ashanti - recorded inflation rates above the national average of 9.0 per cent.

“Upper West Region recorded the highest year-on-year inflation rate of 10.8 per cent, followed by Brong Ahafo Region (9.9 per cent), while the Upper East Region recorded the lowest year-on-year inflation rate (7.7 per cent) in January 2019,” he said.