Inflation drops to 9.46 per cent in July

Accra, Aug. 11, GNA - The annual inflation rate dropped marginally by 0.6 per cent to close at 9.46 per cent in July, up from 9.52 per cent in June. The drop was the 13th in the series after it peaked at 20.74 per cent in June 2009. This brings the respective monthly change between June and July 2010 to 0.82 per cent, which was lower than 1.57 per cent recorded between May and June 2010.

Dr Grace Bediako, Government Statistician, who released the figures at a press conference in Accra on Wednesday, attributed the trend to declining food prices and prudent fiscal management of the economy.

The food component which, had a weight of 44.91 per cent, dropped to 5.84 per cent in July, up from 6.13 per cent in June. On the other hand, the non-food component, which had a weight of 55.09 per cent, recorded a double digit inflation rate of 11.96 in July as compared to 11.89 during the previous month.

On Regional basis, inflation ranged from 5.55 per cent to 14.94 per cent with the Greater Accra Region recording the highest inflation rate, which stood at 14.94 per cent while Central Region recorded the least inflation of 5.55 per cent. Central, Ashanti, Western, Eastern and Volta regions recorded inflation rates below the national rate of 9.46 per cent.

Dr Bediako said the recent increase on utility tariffs led to a marginal rise in inflation rate for the housing and utility sector. She said implementation of the Single Spine Salary Structure would help offset some of the effects of inflation as disposable income of consumers would rise.

Dr Bediako said August, September and October generally had lowest inflation rates but could not forecast whether or not such would be the trend for this year.