February inflation drops marginally to 13.2%

Ghana has recorded a 13.2% in its year-on-year inflation for February 2017 being the lowest inflation recorded since December 2013.

The figure represents a drop of 0.1% points, from the 13.3% recorded in January 2017. This is the fifth consecutive time that inflation has dropped since October 2016.

The monthly change rate for February 2017 was 0.6%, compared to the 2.8% recorded for January 2017.

The food and non-alcoholic beverages group in February 2017, recorded a year-on-year inflation rate of 7.1%. That represent a 0.1% point higher than the rate recorded in January 2017.

Meanwhile main “price drivers” for the non-food group year-on-year for February 2017 inflation was 16.4%, compared to the 16.6% recorded for January 2017.

Six subgroups recorded year-on-year inflation rates higher than the group’s average rate of 16.4%.

The Transport sub group according to data from the Ghana Statistical Service, recorded the highest inflation rate of 23.3%, followed by Recreation and culture with 22.8%, Furnishings, household equipment and routine maintenance with 22.5%, Education with 19.6%, Clothing and footwear with 17.8% and Health with 17.1%.

Inflation was lowest in the Housing, water, electricity, gas and other fuels subgroup which recorded 7.1%.

Speaking to the media, acting government statistician, Baah Wadieh, attributed the decrease in the CPI to a 1.7% fall in the prices of petroleum products within the month under review.

“The reduction in the index for February 2017 is as a result of a marginal drop in fuel prices in February. In February 2017, the average price of petrol, decreased to 4.13 per litre from 4.20 per litre in January 2017. That actually was about 1.7% decrease for the prices of fuel in February. And this reduction is the main contributory factor, driving the fall in inflation that we see now.”

“We also observe that, after the reading of the budget, petroleum prices inched up, but the budget was presented in March, but you must take note that what we are presenting to you are figures that were captured in only February. So, the figure you are seeing is for data in relation to inflation in only February 2017. We are hoping that any upward changes in fuel prices will be captured in our data for March 2017 inflation,” he added.

However, at the regional level, the year-on-year inflation rate ranged from 11.4% in the Volta region to 14.1% in the Greater Accra region.

Five regions (Greater Accra, Upper West, Brong Ahafo, Western and Ashanti) recorded inflation rates above the national average of 13.2%.

Also, five subgroups of the food and non-alcoholic beverages group recorded inflation rates higher than the group’s average rate of 7.1%.