Inflation hits 3½-yr high

…as transport costs rise

The impact of the fuel price hike pushed inflation upward to a three-and-a-half-year high of 11.9 percent in September, according to the Ghana Statistical Service (GSS).

This is up from the 11.5 percent recorded in August, and is the highest since March 2010 when inflation was 13.3 percent.

The rise is just outside the central bank’s target band of 2 percentage points either side of 9 percent.

Last month, the National Petroleum Authority raised petroleum prices by 3.7 percent, while transport operators increased their fares by 20 percent, increasing the likelihood of higher inflation.

Deputy Government Statistician Mr. Baah-Wadieh told a news conference in Accra that though transport hikes pushed inflation up, the overall impact was mitigated by falling prices of food.

“The main trigger is transport because it recorded an inflation rate of 27.7 percent, and that actually impacted on the inflation rate.

“September prices compared with August were generally lower. They declined. We are in the main harvest season, so from the previous month to now the prices have declined; food items have declined.

“The situation last year was that we did not see a fuel-price increase. But now we have seen a fuel increase that has hiked transport prices,” he said.

Monthly inflation for September 2013 remained the same as August, indicating that general prices of goods and services have been falling at a rate of 0.7 percent in the past two months.

Food inflation increased to 8.9 percent, one percentage point higher than in August. Inflation in this group was driven by cereal products, which recorded a rate of 12.2 percent, followed by fish and seafood at 11.5 percent.

Non-food inflation was 14.2 percent, the major driver being transport. Miscellaneous goods followed with 16.3 percent; clothing and footwear was 15.9 percent; while communication costs continued to be lowest at 1.5 percent.

Regional inflation trends indicate that the Western Region continues to record the highest inflation figures, rising to 15.5 percent in September from 15.1 percent in August.

Transport in this region increased by 34.8 percent and housing by 22.9 percent. Health costs rose by 17.9 percent, and hotels, cafés and restrooms by 15 percent. Upper East recorded the lowest regional rate of 6.4 percent.