October inflation falls to 9.2%

Headline inflation slowed marginally in October according to the Ghana Statistical Service, sliding to 9.2 from 9.4 percent in the month of September. 

The drop is the second consecutive fall in inflation since August, and was due to the stability of the cedi and prevailing seasonal conditions resulting in abundant food supply.

Government Statistician Dr. Philomena Nyarko, speaking at a media conference in Accra, explained: “The main drivers of the downward trend are the food items. We are seeing a reduction in the prices of food items because of the harvesting season. The months of August, September and October are the months that [usually] show low inflation.

“Also, the cedi has remained stable; it has actually appreciated slightly against the major currencies,so that is why we are seeing this downward trend.”

The GSS said both food and non-food inflation eased in October, with food inflation slowing from 4.4% to 4.1% and non-food inflation from 12.4% to 12.2%. 

Meanwhile, the policy rate-setting committee of the Bank of Ghana on Wednesday held its prime interest rate unchanged at 15 percent, marking its third consecutive decision to hold the rate steady since June.

This indicates that the rate at which commercial banks borrow from the Central Bank will remain the same for the rest of the year.

Acting Governor Dr. Henry Kofi Wampah explained that the improved exchange rate and inflation rate remaining in the single-digit band triggered the decision by the Central Bank to maintain the policy rate.

At the regional level, the inflation rate ranged from 6.6 percent in the Volta Region to 11 percent in the Central Region.

Apart from Central, Ashanti and Greater Accra, the Northern Region also recorded rates above the national average of 9.2 percent.