Ghana's July Inflation surges to 15.3 %

Headline inflation kept an upward trend in July 2014, rising to 15.3 percent from 15.0 percent in June, Ghana Statistical Service has said.

The rate rose for the 12 straight months since August 2013 figure of 11.5 percent, and is the highest in four-years. 

It was driven mainly by increases in the price of utilities, fuel and depreciation of the cedi against the dollar.

The rate, which is 0.3 percentage points higher than the previous month’s figure, pushes it further past government’s revised 2014 target of 13.0 percent plus or minus two percent set in last month’s mid-year supplementary budget.

Government Statistician Dr Philomena Nyarko announcing the figures at a media briefing in Accra, explaining that the main drivers of the non-food inflation rate were housing, water, electricity, gas and other fuels, which went up by 62.0 percent and transport, which is up by 38.3 percent.

The price-drivers for the food inflation rate were mineral water, soft drinks, fruit and vegetable juices, among others.

She indicated that the year-on-year inflation rate for imported items which registered 21.3 percent is more than one and half times higher than the inflation rate for locally produced items, which recorded 13.1 percent.

The food and non-alcoholic beverages group recorded a year-on-year inflation rate of 5.0 percent. This is 2.9 percentage points lower than the 7.9 percent recorded in June 2014.

Eight sub-groups of the food and non- alcoholic beverages group recorded inflation rates higher than the group’s average rate of 5.0 percent.

 The non-food group recorded a year-on-year inflation rate of 23.1 percent in July 2014, compared with the 20.3 percent recorded in June 2014.

Housing, water, electricity, gas and other fuels recorded the highest rate of 62.0 percent followed by Transport which recorded 38.3 percent. Inflation was lower in the education sub-group.

Dr. Nyarko said trends show inflation can fall during the harvest season. Since May 2014, we have seen a reduction in food inflation from eight percent to five percent in July. 

“We are hoping that there will be bumper harvest, so the price of food might go down further.

 “The food component in the consumer price index (CPI) basket has a weight of 44 percent. So once the price of food goes down, we hope that it will reflect in the overall inflation rate for Ghana,” Dr Nyarko said.

At the regional level, the year-on-year inflation rate ranged from 11.2 percent in the Volta Region to 21.1 percent in the Northern Region. Four regions --  namely Northern, Upper East, Central and Eastern -- recorded inflation rates above the national average of 15.3 percent. 

The rate for Greater Accra Region was the same as the national average of 15.3 percent.