August inflation slides to 17.3%

Headline inflation rate slowed slightlyin August according to the Ghana Statistical Service, sliding to 17.3 percent from 17.9 percent in the month of July 2015. 

 

The drop, which represents 0.6 percentage points from the July inflation rate and largely due to gains in the cedi, is the first time the rate has recorded a decline during the first six months of 2015.

“We had a decline in the inflation rate for the non-food group, and this was mainly driven by the gains made by the country’s cedi as we saw between July and August,” said Philomena Nyarko, Government Statistician, at a media interaction in Accra.

The major contributors to the August inflation rate decline, she said, were the food group and non-food group; adding that the main price-drivers for the non-food inflation rate were recreation and culture (25.8%), education (25.6%), transport (25.3%); clothing and footwear (25.1%), furnishings, household equipment and routine maintenance (24.9%); and housing, water, electricity, gas and other fuels (23.5%). 

While the ‘price-drivers’ for the food inflation rate were mineral water, soft-drinks, fruit and vegetable juices  (13.5%); coffee, tea and cocoa (12.9%); sugar, jam, honey, chocolate and confectionery (11.7%); food products (11.4%), meat and meat products (11.2%); vegetables (10.9%); and milk, cheese and eggs (10.0%).

The inflation rate for imported items was 18.1% in August 2015 compared with 21.2% recorded in July 2015; and the inflation rate for locally-produced items was 17.0% in August 2015, recording the same rate as July 2015.

Analysts have opined the food inflation group’s decline was due to the bumper harvest recorded in the country.

Three regions -- namely the Ashanti, Greater Accra and Central -- recorded inflation rates higher than the national average of 17.3%. The Upper West Region recorded the same inflation rate as the national average of 17.3 percent.

The Ashanti Region recorded the highest year-on-year inflation rate of 18.9%, while the Northern Region recorded the lowest at 13.8%.