Falling cedi pushes prices up

The exchange rate continued to push inflation up as it impacted heavily on the non-food component in the basket. Year-on-Year inflation went by 0.2 per cent to record a rate of 11.8 per cent in July.

According to figures from the rebased Consumer Price Index, clothing and footwear, miscellaneous good and services as well as furnishing, household equipment and routine maintenance recorded inflation rates above 17 per cent.

They recorded 18.1, 17.7 and 17 per cent during the period.

The communications sub sector recorded the least inflation of 1.3 per cent. Apparently it recorded zero percent inflation in July.

The monthly change of inflation was 1.3 per cent. While food inflation remained unchanged at 7.3 percent, non-food inflation shot up by 15.1 per cent.

Meanwhile, the Western region recorded the highest rate of inflation of 15 per cent followed by the Ashanti region with a rate of 14.1 per cent. The Greater Accra region recorded an inflation rate of 11.1.

Upper East region recorded the least inflation rate of 4.6 per cent. The Bank of Ghana has predicted an inflation rate of 9.0 per cent + or minus 2.0 by the end of this year.

This is driven by the regulator’s average forecast based on assumptions on the exchange rate, energy prices and the fiscal policy stance.