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Business News of Wednesday, 13 July 2011

Source: GNA

Ghana inflation falls to 8.59%

Accra, July 13, GNA - The year-on-year inflation fell for the fourth consecutive month to 8.59 per cent in June, down from 8.90 per cent in May, the Ghana Statistical Service (GSS) announced on Wednesday.

This means that the general price level went up by 8.59 per cent from June 2010 to June 2011. However, the year-on-year inflation rate is lower in June than in May.

Dr Grace Bediako, Government Statistician, who announced the figures at a press conference in Accra on Wednesday, attributed the downward trend in the inflation rate to the food group, which has been on the decline since January 2010.

The rate of inflation has fallen continuously over 19 months from 20.74 per cent in June 2009 to 8.58 per cent in December 2010. Inflation has remained relatively stable since June 2010 with rates ranging between 8.58 and 9.52 per cent.

Dr Bediako said internationally the rate was still high but relatively low compared with Ghana's previous years' inflation. The average food inflation rate for June is 2.78 per cent compared to the non-food group average of 12.44 per cent, four times higher than the food inflation rate. She said the inflation rate for 14 imported food products in the group was about twice that of local food products for the last 11 months.

Some of the imported items in the food group include rice, flour, biscuits, sugar and canned tomatoes. On regional variations, Dr Bediako said Greater Accra recorded the highest inflation rate of 12.48 per cent and Volta Region the lowest inflation of 4.65 per cent. The Western, Central and Greater Accra Regions recorded inflation rates above the national rate of 8.59 per cent.