Inflation drops to 15.4%

Government has missed its inflation target of 13.5% as Inflation for December dropped to 15.4% from 15.5% in November 2016.

The prices of goods and services was fairly stable as inflation for the month went down marginally.

This is the lowest since June 2014.

The monthly change rate was 0.9% compared to the 0.8% recorded in November. The food and non-alcoholic beverages recorded a year-on-year inflation rate of 9.7%. This is 0.4% point higher than the rate recorded in November 2016.

Five subgroups of the food and non-alcoholic beverages group recorded inflation rate higher than the group average rate of 9.7%.

The non-food group recorded a year-on-year inflation rate of 18.2% last month compared to the 18.7% recorded for November 2016. Six subgroups recorded a year-on-year inflation rate higher than the group’s average rate of 18.2%.

At the regional level, the year-on-year inflation rate ranged from 13.0% in the Volta Region and the Northern Regions to 18.2% in the Greater Accra Region.

Three regions (Greater Accra, Ashanti and Brong Ahafo) recorded inflation rate above the national average of 15.4%.

The year-on-year inflation rate for imported items was 15.7%. This was 0.5% point higher than that of locally produced items of 15.2%.

The main price drivers for the non-food inflation rate were transport, education, recreation and culture, housing, water, electricity among others. The price drivers for the food inflation rate were meat and meat products, coffee, tea and cocoa, fish and sea food, mineral water among others.

The Greater Accra recorded the highest year-on-year inflation rate of 18.2% followed by the Ashanti and Brong Ahafo Region with 15.5%. Volta and Northern regions recorded the lowest rate of 13.0%.

Consumer Price Index (CPI) measures the change over time in the general price levels of goods and services that households acquire for the purposes of consumption, with reference to the pricing level in 2012, the base year, which has an index of 100.