Inflation shoots up to 12 per cent

Accra, Sept 14, GNA - The end of month inflation for August has shot up to 12 per cent after hitting 9.4 per cent in June, the lowest in more than 15 years. A statistical analysis made available by the Ghana Statistical Service (GSS) to the Ghana News Agency indicated that the figure, which opened the year at 15.3 per cent, eased slightly to 15 per cent in February.

It then dropped to 13.7 per cent in March and 10.2 in April, sending economic analysts and experts to predict a good fiscal year ahead. However, the real impact of the economic trend, especially of cocoa and the international oil market, on the energy sector last year has resulted in an increased inflationary status.

Economic think tanks such as the Centre for Policy Analysis, Institute for Social, Statistical and Economic Research and the Ghana Institute of Management and Public Administration have predicted a high inflation by the end of the year.

The GSS said the new series on the Consumer Price Index (CPI) numbers were presented for national, urban rural and Accra city for August, together with comparable figures from September 1997 to July, 1999. It also represents a combination of food and non-food index over the period.

The yearly inflationary figure also increased considerably to 16.2 per cent at the end of August as against the estimated 13.1 per cent registered for August, last year. The yearly inflationary figure at the beginning of 1999 stood at 12.5 per cent.

The National Index for August was 132 per cent, which compared with 133.24 for July 1999, showing a monthly decrease of 0.4 per cent. Commodities that contributed to the increase in the index include smoked herrings, yam, onion and fresh pepper, among others.

The food and beverages sub-group showed a decrease of 1.5 per cent while sub-groups that showed increase were transport and communications, 1.8 per cent, with recreation, entertainment, education and cultural services showing 0.4 per cent and miscellaneous 1.4 per cent. The rural index chalked 137 per cent and, when compared with the figure of 139.48 in July 1999, recorded a decrease of 1.2 per cent.