Nov inflation rate up to 17.6%

The year-on-year inflation for the month of November inched up marginally to 17.6 percent, up by 0.2 percentage points from the October 2015 figure of 17.4 percent, latest figures released by the Ghana Statistical Service have shown.

The figure is the highest inflation rate since July 2015, which was mainly driven by increases in cost of food, housing and utilities, transportation and clothing during the period under review.

Mr. Baah Wadieh, Deputy Government Statistician speaking at a media briefing in Accra, said the year-on-year food inflation rate for November was 7.9 percent compared with the 7.8 percent recorded for October 2015.

“We also have the year-on-year non-food inflation rate for November 2015, reading at 23.2 percent as compared with the 23.0 percent recorded in October 2015,” he said.

He explained that the year-on-year inflation rate for imported items of 18.6 percent for November 2015 was 1.4 percent higher than that for locally produced items at 17.2 percent.

Year-on-year, prices food and non-alcoholic beverages rose at a faster rate of 7.9 percent compared with the October figure of 7.8 percent; housing, water, electricity, gas and other fuels went up by 24.1 percent, with the previous month’s figure recording 23.1 percent while transport went up by 26.2 percent.

Clothing and footwear rose by 25.6 percent (+24.5 percent in October) and education increased 29.6 percent (+28.8 percent in October).

In contrast, cost of hotels and cafes (+18.1 percent from +18.7 percent in October) and recreation and culture (+26.5 percent from +29.9 percent in October) increased at a slower pace. 

The price-drivers for the food inflation rate were vegetables (13.4 percent), and mineral water, soft drinks, fruit and vegetable juices (8.4 percent) as the main price drivers for the food inflation rate.

Fast growth in the economy driven by exports of gold cocoa and oil has been undermined by fiscal challenges, including the rising budget deficit.

Imported inflation is expected to rise during this month to the December festive season, and this could influence the index in coming months. The monthly consumer prices went up by 1.0 percent, compared to a 2.7 percent rise in the previous month. 

Three regions -- namely Upper West, Greater Accra and Ashanti -- recorded inflation rates higher than the national average of 17.6 percent.

The Upper West Region recorded the highest year-on-year rate of 19.1 percent, while the Upper East Region recorded the lowest inflation rate of 13.0 percent.