Rate Of Inflation Eases, But...

The rate of inflation has dropped marginally by 0.46 per cent in the month of November. The improvement from 8.56 in October to 8.55 in November was announced at the release of the Consumer Price Index (CPI) by the Ghana Statistical Service (GSS) in Accra. The Government Statistician, Dr Grace Bediako, who announced the rate, said the country should expect a rise in December this year, despite the insignificant fall in rates for the month of November. She said past trends had shown that during the festive season, there was more pressure on the economy due to increased spending and demand from the public. The rate of inflation has remained at the single digit level since June 2010. Over the past 12 months, the rate has ranged between 9.08 per cent to 8.56 per cent. The year 2011 began with a rate of 9.08 per cent and increased to 9.16 per cent in February before falling continuously to 8.39 per cent in July 2011. The rate increased slightly to 8.56 per cent in October 2011 and has remained almost the same in November. The non-food group remains the major contributor of the upward pressure on the general price level. The rate of inflation for this group has been falling since June 2011, dropping from 12.44 per cent to 11.08 per cent in November 2011, after it had risen marginally from 11.30 per cent in September 2011 to 11.32 per cent in October 2011. The non-food group, with a combined weight of 55.09 per cent, had six sub-groups recording inflation rates above the groups average of 11.08 per cent. They include transport (22.28 per cent); miscellaneous goods and services (18.08 per cent); clothing and footwear (13.47 per cent); furnishing, household equipment, etc. (13.02 per cent); alcoholic beverages, tobacco and narcotics (11.89 per cent) and recreation and culture (11.50 per cent). On the other hand, the food and non-alcoholic beverages group recorded single digit inflation rates over the past 12 months, ranging between 5.32 per cent in November 2010 and 2.78 per cent in June 2011. The rate was 4.41 per cent in November 2011. Sub-groups that recorded comparatively high inflation rates in the food and non-alcoholic beverages group in November 2011 are coffee, tea and cocoa (14.01 per cent); sugar, jam, honey, syrups, chocolate and confectionary (12.13 per cent); meat (11.35 per cent) and bread and cereals (8.62 per cent), which record about two or more times the groups average inflation of 4.41 per cent. In the regions, inflation rates ranged from 5.43 per cent in the Upper East and West regions to 10.54 per cent in the Central Region. The Central, Ashanti, Greater Accra and Western regions recoded inflation rates above the national rates of 8.55 per cent.