By Fred SARPONG
After a continued downward trend for 18 consecutive months, inflation for January 2011 is expected to go up due to the fuel price increases introduced a few weeks ago.
“Because the fuel price increase affects the distribution chain, it is very difficult for prices of goods and services to come down,” Magnus Ebo Duncan, the head of Economic Division at the Ghana Statistical Service (GSS), has warned.
Duncan stated this when he released the December 2010 rate of inflation statistics in Accra last week.
According to him, it is very difficult to say the downward trend of inflation has come to an end as a result of the fuel price increases in early this month, but was sure that the index will definitely go up, although he did add that “But we cannot rule out it coming down.”.
Meanwhile, figures released by the the Ghana Statistical Service (GSS) indicate that the general price level in the country went up by 8.58% in December 2010, relative to December 2009. The rate is 0.50 percentage points lower than that of November 2010.
The rate of inflation fell for 19 consecutive months from June 2009, which had a rate of 20.74%, to December 2010 with inflation rate of 8.58%. The rate of inflation for December 2010 is the lowest since June 1992, when it stood at 8.4%.
Month-on-month inflation rate in December 2010 at 1.13% showed a rise when compared to the November 2010 figure of 0.47%.
The level of food and non-food inflation rates determined the overall rate of inflation of 8.58%. The food group has 10 sub-groups. The sub-groups which recorded the highest inflation rates for most part of the year were mineral waters, soft drinks and juices and sugar, jam and chocolate subgroups.
Bread and cereals subgroup had started with double-digit inflation for the first three months of the year, but declined afterwards to record negative rates from August till the end of the year. Coffee, tea and cocoa subgroups exhibited relatively stable inflation rates.
Four sub-groups, namely alcoholic beverages, tobacco and narcotic (20.40%); housing, water, electricity, gas and other utilities (15.08%); hotel and restaurants (14.96%) and clothing and footwear (14.13%) recorded inflation rates above the non-food rate of 11.22%. for the year up to December 2010. Prices of products in the communications sub-groups remained constant throughout the period with a zero inflation rate.
On regional basis, four regions, namely Eastern Region (7.05), Ashanti (9.9%), Northern (9.94%) and Western (10.08%) regions, recorded average inflation rates below the national average of 10.79% in 2010. The Upper East and Upper West regions recorded the highest average inflation rates for the year.
Inflation rates in the regions for December 2010 ranged from 5.97% for the Volta Region to 13.05% for the Greater Accra Region. Six regions recorded inflation rates below the national rate of 8.58%. The regions were Volta 5.97%, Western 6.19%, Brong Ahafo 7.03%, Ashanti 7.12%, Eastern 7.20%, and Central 7.94%. The rest are Northern 9.30%, Upper East and Upper West 10.92%, and Greater Accra 13.05%.
The rate of inflation has been falling since June 2009. The largest decline in 2010 was recorded in April (1.66 percentage points), followed by January (1.19 percentage points) and June (1.16 percentage points). The other months recorded declines below one percentage point, with the lowest recorded in September 2010 with 0.02 percentage points. The cumulative decline between January 2010 and December 2010 is 6.20 percentage points, from 14, 78% to 8.58%.
The downward pressure on inflation can be attributed to both the food and non-alcoholic beverages group and the non-food group. The food and non-alcoholic beverages group has been recording single digit inflation rate since January 2010, falling from 9.08% to 4.69% in May 2010.
Thereafter, it rose to 6.13% in June 2010 and fell again to 5.33% in August 2010. It rose again to 5.67% in September 2010, and then fell to 5.32% in November 2010, and 4.50% in December 2010.
After a continued downward trend for 18 consecutive months, inflation for January 2011 is expected to go up due to the fuel price increases introduced a few weeks ago.
“Because the fuel price increase affects the distribution chain, it is very difficult for prices of goods and services to come down,” Magnus Ebo Duncan, the head of Economic Division at the Ghana Statistical Service (GSS), has warned.
Duncan stated this when he released the December 2010 rate of inflation statistics in Accra last week.
According to him, it is very difficult to say the downward trend of inflation has come to an end as a result of the fuel price increases in early this month, but was sure that the index will definitely go up, although he did add that “But we cannot rule out it coming down.”.
Meanwhile, figures released by the the Ghana Statistical Service (GSS) indicate that the general price level in the country went up by 8.58% in December 2010, relative to December 2009. The rate is 0.50 percentage points lower than that of November 2010.
The rate of inflation fell for 19 consecutive months from June 2009, which had a rate of 20.74%, to December 2010 with inflation rate of 8.58%. The rate of inflation for December 2010 is the lowest since June 1992, when it stood at 8.4%.
Month-on-month inflation rate in December 2010 at 1.13% showed a rise when compared to the November 2010 figure of 0.47%.
The level of food and non-food inflation rates determined the overall rate of inflation of 8.58%. The food group has 10 sub-groups. The sub-groups which recorded the highest inflation rates for most part of the year were mineral waters, soft drinks and juices and sugar, jam and chocolate subgroups.
Bread and cereals subgroup had started with double-digit inflation for the first three months of the year, but declined afterwards to record negative rates from August till the end of the year. Coffee, tea and cocoa subgroups exhibited relatively stable inflation rates.
Four sub-groups, namely alcoholic beverages, tobacco and narcotic (20.40%); housing, water, electricity, gas and other utilities (15.08%); hotel and restaurants (14.96%) and clothing and footwear (14.13%) recorded inflation rates above the non-food rate of 11.22%. for the year up to December 2010. Prices of products in the communications sub-groups remained constant throughout the period with a zero inflation rate.
On regional basis, four regions, namely Eastern Region (7.05), Ashanti (9.9%), Northern (9.94%) and Western (10.08%) regions, recorded average inflation rates below the national average of 10.79% in 2010. The Upper East and Upper West regions recorded the highest average inflation rates for the year.
Inflation rates in the regions for December 2010 ranged from 5.97% for the Volta Region to 13.05% for the Greater Accra Region. Six regions recorded inflation rates below the national rate of 8.58%. The regions were Volta 5.97%, Western 6.19%, Brong Ahafo 7.03%, Ashanti 7.12%, Eastern 7.20%, and Central 7.94%. The rest are Northern 9.30%, Upper East and Upper West 10.92%, and Greater Accra 13.05%.
The rate of inflation has been falling since June 2009. The largest decline in 2010 was recorded in April (1.66 percentage points), followed by January (1.19 percentage points) and June (1.16 percentage points). The other months recorded declines below one percentage point, with the lowest recorded in September 2010 with 0.02 percentage points. The cumulative decline between January 2010 and December 2010 is 6.20 percentage points, from 14, 78% to 8.58%.
The downward pressure on inflation can be attributed to both the food and non-alcoholic beverages group and the non-food group. The food and non-alcoholic beverages group has been recording single digit inflation rate since January 2010, falling from 9.08% to 4.69% in May 2010.
Thereafter, it rose to 6.13% in June 2010 and fell again to 5.33% in August 2010. It rose again to 5.67% in September 2010, and then fell to 5.32% in November 2010, and 4.50% in December 2010.
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