Inflation continues to decline, recording 14.23%
By Fred SARPONG
Year-on-year inflation measured by the consumer price index (CPI) dropped by 0.55% for the 12-month period ended February 2010 from the 14.78% recorded in January 2010, according to figures released by the Ghana Statistical Service (GSS).
The February 2010 inflation rate is the lowest in the past 25 consecutive months. The monthly rate of inflation in February 2010 was 1.51%, which was the lowest figure, as compared to 1.59% recorded in January 2010.
Inflation had since been on the increase since October 2008 recording 17.30% and in June recorded its peak of 20.74%, but has in recent times started declining significantly until it recorded 14.23%, the lowest since January 2008.
Non-food component of the CPI, which constitutes 55.09% of the weighted items in the basket, contributed to the decline for February 2010 inflation more than the food component. Non-food inflation for February was 18.54%, while food inflation for the same period recorded 8.17%.
BusinessWeek learnt that the most notable changes over the period from February 2009 to February 2010 were highest figures recorded in recreation and culture with 41.43%; furnishing, household equipment 23.37%; hotel and restaurants 21.71%; and transport 20.44% and some food product groups like sugar, jam, honey, syrups, chocolate and confectionary 35.15%; milk, cheese and eggs 25.08%; and mineral water, soft drinks and juice 23.94%. The fruits subgroup recorded a negative inflation rate of 2.61%.
Inflation rates in the regions were 7.79% for Northern Region, as the lowest, and 22.70% for Central Region as the highest. Five regions, Ashanti 14.40%, Brong Ahafo 14.65%, Upper East and Upper West 17.77%, Volta 18.94% and Central Region recorded inflation rate above the national rate of 14.23%. Other regions which recorded below the national rate are Eastern Region 9.47%, Western Region 12.84%, and Greater Accra Region 13.52%.
Analysts have predicted that inflation is likely to go up within the second quarter of 2010 as a result of some key policy initiatives taken by the government.
These, according to them, include road toll increase, new tax on some packages of mineral waters, among others.
However, Magnus Ebo Duncan, Head of Economic Statistics and Industry Group at the GSS, said if imports start to go up, inflation will also go up.
He indicated that for some months now imports have gone down drastically and that has contributed to the decline in inflation.
By Fred SARPONG
Year-on-year inflation measured by the consumer price index (CPI) dropped by 0.55% for the 12-month period ended February 2010 from the 14.78% recorded in January 2010, according to figures released by the Ghana Statistical Service (GSS).
The February 2010 inflation rate is the lowest in the past 25 consecutive months. The monthly rate of inflation in February 2010 was 1.51%, which was the lowest figure, as compared to 1.59% recorded in January 2010.
Inflation had since been on the increase since October 2008 recording 17.30% and in June recorded its peak of 20.74%, but has in recent times started declining significantly until it recorded 14.23%, the lowest since January 2008.
Non-food component of the CPI, which constitutes 55.09% of the weighted items in the basket, contributed to the decline for February 2010 inflation more than the food component. Non-food inflation for February was 18.54%, while food inflation for the same period recorded 8.17%.
BusinessWeek learnt that the most notable changes over the period from February 2009 to February 2010 were highest figures recorded in recreation and culture with 41.43%; furnishing, household equipment 23.37%; hotel and restaurants 21.71%; and transport 20.44% and some food product groups like sugar, jam, honey, syrups, chocolate and confectionary 35.15%; milk, cheese and eggs 25.08%; and mineral water, soft drinks and juice 23.94%. The fruits subgroup recorded a negative inflation rate of 2.61%.
Inflation rates in the regions were 7.79% for Northern Region, as the lowest, and 22.70% for Central Region as the highest. Five regions, Ashanti 14.40%, Brong Ahafo 14.65%, Upper East and Upper West 17.77%, Volta 18.94% and Central Region recorded inflation rate above the national rate of 14.23%. Other regions which recorded below the national rate are Eastern Region 9.47%, Western Region 12.84%, and Greater Accra Region 13.52%.
Analysts have predicted that inflation is likely to go up within the second quarter of 2010 as a result of some key policy initiatives taken by the government.
These, according to them, include road toll increase, new tax on some packages of mineral waters, among others.
However, Magnus Ebo Duncan, Head of Economic Statistics and Industry Group at the GSS, said if imports start to go up, inflation will also go up.
He indicated that for some months now imports have gone down drastically and that has contributed to the decline in inflation.
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