Coronavirus breaks 21-month single-digit inflation run

Inflation 1024x485 File photo

Thu, 14 May 2020 Source: thebusiness24online.net

The outbreak of the novel coronavirus has succeeded in ending the 21-month single-digit inflation run, with the latest rate rising from 7.8 percent to 10.6 percent, the Ghana Statistical Service’s latest data has shown.

The month-on-month inflation recorded by the country’s statistical agency has never exceeded 10 percent since June 2018.

But according to the inflation figures released by the Ghana Statistical Service, April’s inflation was 10.6 percent, the highest since February 2018 when the figure stood at 10.6 percent.

Explaining the sudden surge in prices recorded last month, the statistical service said the restriction on movement imposed by the government to combat COVID-19 played a key role in driving upwards the prices of goods and services.

“On average, the rate of inflation in regions that were directly hit by

the partial lockdowns was 8.81% higher than the other regions,” a release issued by the GSS said.

Ghana’s two key regions in terms of economic activity, Greater Accra and Ashanti region, were placed under a partial lockdown from March 30 to April 20, 2020 — as part of efforts by the government to curb the spread of COVID-19.

The agency explained that the upward movement was driven largely by a sharp increase in food inflation, which stood 14.4 percent compared the average 8.8 percent recorded over the past eight months.

Inflation in the non-food basket, however, stood at 7.7 percent — a marginal drop from the average 7.8 percent recorded over the last eight months.

Source: thebusiness24online.net