May inflation surges to 16.9%

Consumer inflation kept an upward trend in May 2015, surging to 16.9 percent from 16.8 percent recorded in April 2015 on the back of increases in utility tariffs and fuel prices, the Ghana Statistical Service has announced.

This latest inflation figure, which is 0.1 percentage points higher than the previous month’s figure, confirms the rising trend of the Consumer Price Index since January 2015. 

“The key drivers are mainly price changes in imported household consumables as a result of the cedi’s continued decline,” government statistician Philomena Nyarko told a media conference in Accra. 

The cedi has weakened nearly 22 percent since January to record low after plunging 31 percent last year.   

Food inflation is expected to ease during the August to October harvest season, and this could influence the index in coming months. 

The monthly inflation rate in May was 1.0 percent.

The annualised food prices increased 7.3 percent, housing and utilities surged 25.4 percent, and clothing and footwear went up 24.4 percent. 

Additional upward pressure came from transport which went up by 25.2 percent, miscellaneous goods and services went up 19.5 percent, and restaurants, cafes and hotels had 21 percent upwards.

Dr. Nyarko said: “The main price-drivers for the non‐food inflation rate were housing, water, electricity, gas and other fuels recorded 25.4%; transport had 25.2%, clothing and footwear 24.4%; and furnishing, household equipment and routine maintenance also had 23.5%.  

“The price-drivers for the food inflation rate were food products 18.8%, coffee, tea and cocoa 17.1%; sugar, jam, honey, chocolate and confectionery 16.9%; mineral water, soft drinks, fruit and vegetable juices 16.4%; meat and meat products 13.3%; milk, cheese and eggs 13.2%; and cereals and cereal products 8.3%.”  

At the regional level, the year-on-year inflation rate ranged from 15.4 percent in both the Upper West and Western Regions to 19.0 percent in the Central Region. 

Five regions, namely Central, Ashanti, Volta, Upper East and Greater Accra, recorded inflation rates above the national average of 16.9 percent.