Stubborn inflation rises again

Headline inflation kept its upward trend in February, rising to 14 percent from 13.8 percent in January, the Ghana Statistical Service has said.

The rate rose for the sixth straight month and is the highest in four years. It was driven by higher fuel prices, mainly kerosene and transport, and higher dairy costs. Price changes in housing, water and electricity also drove the index.

Food and non-food inflation shot up to 7.5 percent and 19 percent respectively said Dr. Philomena Nyarko, Government Statistician, at a media briefing in Accra. The comparative rates in January were 7.1 percent and 18.9 percent respectively.

The monthly inflation rate in February 2014 was 1.1 percent, compared to 3.9 percent in January.

Analysts are of the view that the economy has faced massive challenges with lots of external shocks.

Some have predicted a further surge in inflation this year based on government’s fiscal and monetary policy framework, expectations for key commodity prices, and instability of the cedi against major currencies like the US dollar.

The country’s economy, which depends largely on the export of commodities like oil, gold and cocoa, was hard hit by the persistent fall in commodity prices on the global market last year, affecting government revenue and the budget deficit.

On regional dynamics, Ashanti Region recorded the highest inflation rate of 16.7 percent while the Upper West recorded the least inflation rate of 9.5 percent. The Greater Accra Region recorded an inflation rate of 14.4 percent.