Inflation now stands at 16.88%

Accra, June 13, GNA - The monthly inflation rate for May has increased from 15.29 per cent in April to 16.88 per cent, according to the Ghana Statistical Service.

The rate has been rising since the beginning of the year, jumping by 1.59 percentage points, the highest so far for the year. The difference between the rate of inflation in two preceding months (April and March 2008) was slightly lower being 1.50 percentage points.

The major contributory factors were categorized into eight sub-groups comprising the non-food groups which percentage rate was 2.62 higher than that of the food groups being another contributory factor. Among the sub-groups, only two of these groups (fish, and bread and cereals) are in the food group. Those in the non-food groups are hotels, caf=E9s and restaurants, transport among others.

Statistics show that inflation rates recorded in the regions range from 11.84 per cent in Ashanti to 23.00 per cent in the Northern Region. Northern Region led six regions that recorded inflation rates above 20 per cent whilst Greater Accra led the other three regions that recorded inflation rates below the national rate of 16.88 per cent. The rate of inflation has increased in all the regions.

Meanwhile the month-to-month, that is the monthly rate of inflation from one month to the other, has also been increasing since the beginning of the year.

The January monthly change of 1.17 per cent rose to 3.20 percent in May 2008.