Inflation dips to two year low in February

Accra, March 10, GNA - Ghana's inflation rate fell to 14.23 per cent in February from 14.78 per cent in January, its lowest level in almost two years, the Ghana Statistical Service said on Wednesday.

The drop in the rate is the eighth consecutive monthly fall. "The non-food inflation rate has been relatively high and stable than the food inflation rate and mimics the year-on-year inflation. The food inflation is decreasing slower than the non-food inflation. That indicates a widening inflationary discrepancy," Mr Magnus Ebo Duncan, Director of Economic Statistics, told a press conference.


Inflation in the non-food group, which has a weight of 55.09 per cent, has had a major influence on the overall rate of inflation. In February 2010, inflation rates above 20 per cent were recorded in recreation and culture, furnishing, households' equipment, hotel and restaurants as well as transport.


Food sub groups which recorded high inflation rates are sugar, jam, honey, syrups, chocolate and confectionery, registering over 35 per cent. Milk, cheese and eggs registered 25.08 per cent. On regional trends, Mr Duncan said the rates in the regions range from 7.79 per cent in the Northern Region to 22.70 per cent in the Central Region.

Five regions made up of Ashanti, Brong Ahafo, Upper East and West, Volta and Central, recorded inflation rates above the national rate of 14.23 per cent.


On expectations for the year, Mr Duncan said it would be difficult to make any prediction of the inflation trend, saying all depended on the management of fiscal and monetary policy, as well as the weather condition. "So all those things have to come into play before you can really stick your neck out that inflation is going to go down or up," he said.