Food prices drive November inflation down

The country for the first time since the outbreak of the coronavirus pandemic has recorded a single-digit inflation.

Annual inflation rate dropped the lowest in eight months to 9.8 percent in November from 10.1 percent in October.

The month-on-month inflation between October and November 2020 stood at 0.3 percent.

The annual inflation rate between January to March this year stood at a single digit of 7.8 percent before it rose the highest in July at 11.4 percent and further dropped by 10.1 October and eventually declined to 9.8 percent in November.

Government Statistician, Professor Samuel K. Annim who announced this at a news conference in Accra on Wednesday, when he presented the November Consumer Price Index and Inflation, attributed the drop in the inflation rate to food inflation.

He indicated that food inflation declined from 12.6 percent in October to 11.7 percent in November.

In the food division water (0.0 percent), fruits and vegetable juices (0.2 percent), cocoa drinks (3.3 percent), soft drinks (4.2 per cent), coffee and coffee substitutes (4.5 percent) recorded inflation below the sector average of 11.7 percent, while fruits and nuts (21.7 percent), vegetables (19.5 percent), fish and other sea food (17.5 per cent), tea (14.0 percent) above the sector average.

“The ‘Housing, Water, Electricity, and Gas’ Division contributed 22.6 per cent to the total inflation,” he said, adding that “This is driven by rent and refuse collection.”

Prof. Annim said non-food Inflation in November stood at 8.3 percent, which he said was the same as last month and represented month-on-month inflation rate of 0.3 percent.

For the non-food division, the Government Statistician, among others, mentioned that Insurance and Financial Services (2.1 percent), Education Services (2.3 per cent), Recreation, Sports and Culture (2.8 percent) recorded inflation below the sector average of 8.3 percent and housing, water, electricity and gas (21.0 percent) and personal care and miscellaneous goods (3.4 percent) above the sector average.

“Housing recorded the highest month -on – month inflation 0.9 percent and housing was the only division with a month – month inflation higher than recorded on average Sept 2019 – March 2020 and Apr – Oct 2020,” Prof. Annim said.

“Inflation for locally produced items in November was 11.5 percent and that of imported items was 5.6 percent,” he said.

The Government Statistician pointed out that variation between food 11.7 percent and non-food inflation of 8.3 percent was 3.4 percent and the difference between locally produced items of 11.5 percent and imported items of 5.9 percent was 7.1 percent.

He said month-on-month (October 2020 – November 2020) food inflation was 0.3 percent.

Prof. Annim stressed that stark variation continued to exist across regions, and source and type of items.

He said the overall year-on-year regional inflation ranged from 3.4 percent in the Upper West and Volta regions to 15.2 per cent in Greater Accra.