By Fred SARPONG
Year-on-year inflation measured by the Consumer Price Index (CPI) dropped by 0.91% for the 12-month period ended March 2010, from the 14.23% recorded in February 2010 to 13.32% last month, according to figures released by the Ghana Statistical Service (GSS).
The March 2010 inflation rate is the lowest in the past 26 consecutive months. The monthly rate of inflation in March 2010 was 1.14%, which was the lowest figure this year, and compares with 1.59% recorded in January 2010.
Inflation had been on the increase since October 2008 when it recorded 17.30% and in June recorded its peak of 20.74%, but since then has been declining significantly until it recorded 13.32%, the lowest since January 2008.
The food component of the CPI which constitutes about 45% of the weighted items in the basket, contributed to the decline for March 2010 inflation. Non-food inflation for March was 17.55%, while food inflation for the same period recorded 7.35%.
BusinessWeek learnt that the most notable changes over the period from March 2009 to March 2010 were the highest figures recorded in recreation and culture with 41.03%; furnishing, household equipment 22.25%; hotel and restaurants 20.43%; and clothing and footwear 19.78% and some food product groups like sugar, jam, honey, syrups, chocolate and confectionary 33.77%; food products 24.37%, mineral waters, soft drinks and juices 22.95% and meat 17.7%. Fish subgroup recorded the lowest inflation rate of 0.03%.
Inflation rates in the regions included 6.98% for Eastern Region, as the lowest, and 20.16% for Central Region as the highest. Three regions, Greater Accra 11.26%, Northern 10.90% and Eastern 6.98% recorded inflation rates below the national rate of 13.32%. Other regions which recorded above the national rate are Western Region 14.58, Ashanti Region 14.67%, Volta Region 15.23%, Brong Ahafo Region 15.44%, Upper East and Upper West 17.20% Central Region 20.16%.
Even though inflation has continued declining, 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 and new tax on some packages of mineral waters, among others.
There are also the prospects of major increases in electricity tariffs and the likelihood of higher petrol prices as well, both of which would reverberate around the economy in the form of accelerated inflation.
Year-on-year inflation measured by the Consumer Price Index (CPI) dropped by 0.91% for the 12-month period ended March 2010, from the 14.23% recorded in February 2010 to 13.32% last month, according to figures released by the Ghana Statistical Service (GSS).
The March 2010 inflation rate is the lowest in the past 26 consecutive months. The monthly rate of inflation in March 2010 was 1.14%, which was the lowest figure this year, and compares with 1.59% recorded in January 2010.
Inflation had been on the increase since October 2008 when it recorded 17.30% and in June recorded its peak of 20.74%, but since then has been declining significantly until it recorded 13.32%, the lowest since January 2008.
The food component of the CPI which constitutes about 45% of the weighted items in the basket, contributed to the decline for March 2010 inflation. Non-food inflation for March was 17.55%, while food inflation for the same period recorded 7.35%.
BusinessWeek learnt that the most notable changes over the period from March 2009 to March 2010 were the highest figures recorded in recreation and culture with 41.03%; furnishing, household equipment 22.25%; hotel and restaurants 20.43%; and clothing and footwear 19.78% and some food product groups like sugar, jam, honey, syrups, chocolate and confectionary 33.77%; food products 24.37%, mineral waters, soft drinks and juices 22.95% and meat 17.7%. Fish subgroup recorded the lowest inflation rate of 0.03%.
Inflation rates in the regions included 6.98% for Eastern Region, as the lowest, and 20.16% for Central Region as the highest. Three regions, Greater Accra 11.26%, Northern 10.90% and Eastern 6.98% recorded inflation rates below the national rate of 13.32%. Other regions which recorded above the national rate are Western Region 14.58, Ashanti Region 14.67%, Volta Region 15.23%, Brong Ahafo Region 15.44%, Upper East and Upper West 17.20% Central Region 20.16%.
Even though inflation has continued declining, 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 and new tax on some packages of mineral waters, among others.
There are also the prospects of major increases in electricity tariffs and the likelihood of higher petrol prices as well, both of which would reverberate around the economy in the form of accelerated inflation.
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