Inflation Rate ends year in single digit- 8.58 percent in December

Accra , Jan 11, GNA - The rate of inflation ended 2011 in single digit at 8.58 per cent in December, slightly higher than the 8.55 per cent recorded in November.

Government had projected an inflation target of nine percent at year end.

On the whole, the average rate of inflation for 2011 was 8.73 pe rcent.

Government Statistician, Dr Grace Bediako, who announced the figures at a press briefing in Accra on Wednesday, said the slow rise in inflation was helped by lower food inflation, over the entire period of 2011.

The food inflation was 4.27 per cent in December compared to 11.21 per cent for the non-food, led by transport, within the period under review.

“The non-food inflation is more than two and half times the food inflation,” Dr Bediako said, adding that it would be difficult to predict the impact of the recent fuel price hikes on inflation in January.

“The effect of the fuel prices on inflation in January will depend on the weight and the prices in the basket,” she said.

Dr Bediako said clothing and footwear contributed the highest to the rate of inflation in December, adding 18 per cent mainly because of the Christmas festivities.

Inflation rate in the Regions ranged from 5.55 per cent in Upper East and Upper West Regions to 11.15 per cent in Central Region. The Central, Ashanti, and Western Regions recorded inflation rates above the national rate of 8.58 per cent.