…Recording 59-month highest since Jan. 2004
By Fred SARPONG
The February 2009 inflation, measured by the consumer price index (CPI) and released by the Ghana Statistical Service (GSS), hit 20.34%, being the highest in 59 months, since the January 2004 figure of 22.4%.
This is the second time, under the current government, when inflation has increased. The February 2009 inflation of 20.34% from the 19.86% recorded in January 2009, represents an increase of 0.48 percentage points.
The government statistician, Dr. Grace Bediako, said the continuing rise of inflation is as a result of the depreciation of the cedi against the major currencies, such as the dollar, despite the price of crude oil on the world market being stable.
She said if the trend continued it is likely the rate of inflation will start coming down from this month.
The government statistician indicated that it will also depend on the government putting in place good measures to hold back the continuing rise of inflation.
BusinessWeek understands that if the rate of inflation failed to hit a single digit at the end of this year, it will affect the successful introduction of a common currency (eco) for West African states. Single digit inflation is one of the convergence criteria for the member countries.
Meanwhile, a Databank research team has predicted about 17.9% of inflation by the end of this year.
There was a gradual decline in inflation from June 2008 to October 2008. This decline could not be sustained as the rate started moving upwards from November 2008 till February, this year.
The contributions of the non-food and food groups to the inflation rate in February, this year were 11.76% and 8.58 % respectively.
Seven subgroups contributed more than one percentage point to the annual rate of inflation for February, this year. They include hotels, cafes and restaurants; furnishing, households equipment and routine maintenance; clothing and footwear; health and recreation and culture for non-food group and vegetables, including potatoes and other tuber vegetables; bread and cereals; and fish subgroups for the food group.
The monthly rate of inflation recorded last month was 2.00%. That of January 2008 was 2.64%.
On regional basis, Upper East and Upper West had 28.61% rate of inflation, Northern 28.32%, Greater Accra 24.13%, Eastern 20.94% and Ashanti 19.58%. Central 18.92%, Western Region 17.83%, Brong Ahafo had 15.87% and Volta recorded the lowest rate of 14.37%.
By Fred SARPONG
The February 2009 inflation, measured by the consumer price index (CPI) and released by the Ghana Statistical Service (GSS), hit 20.34%, being the highest in 59 months, since the January 2004 figure of 22.4%.
This is the second time, under the current government, when inflation has increased. The February 2009 inflation of 20.34% from the 19.86% recorded in January 2009, represents an increase of 0.48 percentage points.
The government statistician, Dr. Grace Bediako, said the continuing rise of inflation is as a result of the depreciation of the cedi against the major currencies, such as the dollar, despite the price of crude oil on the world market being stable.
She said if the trend continued it is likely the rate of inflation will start coming down from this month.
The government statistician indicated that it will also depend on the government putting in place good measures to hold back the continuing rise of inflation.
BusinessWeek understands that if the rate of inflation failed to hit a single digit at the end of this year, it will affect the successful introduction of a common currency (eco) for West African states. Single digit inflation is one of the convergence criteria for the member countries.
Meanwhile, a Databank research team has predicted about 17.9% of inflation by the end of this year.
There was a gradual decline in inflation from June 2008 to October 2008. This decline could not be sustained as the rate started moving upwards from November 2008 till February, this year.
The contributions of the non-food and food groups to the inflation rate in February, this year were 11.76% and 8.58 % respectively.
Seven subgroups contributed more than one percentage point to the annual rate of inflation for February, this year. They include hotels, cafes and restaurants; furnishing, households equipment and routine maintenance; clothing and footwear; health and recreation and culture for non-food group and vegetables, including potatoes and other tuber vegetables; bread and cereals; and fish subgroups for the food group.
The monthly rate of inflation recorded last month was 2.00%. That of January 2008 was 2.64%.
On regional basis, Upper East and Upper West had 28.61% rate of inflation, Northern 28.32%, Greater Accra 24.13%, Eastern 20.94% and Ashanti 19.58%. Central 18.92%, Western Region 17.83%, Brong Ahafo had 15.87% and Volta recorded the lowest rate of 14.37%.
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