Business News of Friday, 13 July 2012

Source: Daily Guide

Inflation Inches Up To 9.4%

Inflation moved up slightly in June 2012 to 9.4 percent from 9.3 percent recorded in May on a year-on-year basis.

Kofi Agyeman-Duah, Deputy Government Statistician in charge of operations, who disclosed this to the media yesterday in Accra, said the increase should not give any cause for alarm since it is insignificant.

Also, he said the development should not lead to panic buying since the period between August and October was characterized by a reduction in the general price levels of food items as a result of the harvesting season.

He was presenting the Consumer Price Index (CPI) inflation measured by his outfit in June. It was based on 81 local food products against 14 foreign ones.

“It is only people who live on a lot of the imported food items who would feel the impact of the increase.”

In respect of the monthly change rate measured, Mr Agyeman-Duah said it recorded 1.4 percent for June, representing a 0.6 percentage point lower than the figure recorded in May.

The CPI measures changes over time in the general price level of goods and services that households acquire for consumption.

The food and the non-alcoholic beverages group recorded an average year-on-year inflation rate of 5.4 percent, slightly higher than the 5.0 percent recorded in May.

Seven sub-groups of the food and non-alcoholic beverages group recorded inflation rates above the group’s average inflation rate.

The non-food group recorded a year-on-year inflation rate of 11.9 percent.

Transport recorded the highest rate of 19.7 percent followed by alcoholic beverages, tobacco and narcotics (cola nuts) with 16.3 percent. Inflation was lowest in the communication group (below 1 percent).

Miscellaneous goods and services group recorded the highest month-on-month price change of 2.3 percent, followed by furnishings, household equipment, among others.

At the regional level, the year-on-year inflation rate ranged from 5.1 percent in the Upper East and Upper West regions to 12.2 percent in the Central region.

Three regions-Central, Ashanti and Greater Accra- recorded inflation rates above the national average of 9.4 percent.