Inflation falls to 19-year low at 8.58 per cent

Accra, Jan. 12, GNA - The rate of inflation fell to 8.58 per cent year-on-year in December, down from 9.08 per cent in November. The rate is the lowest since June 1992, when it stood at 8.4 per cent. This means that general price levels in the country went up by 8.58 pe= r cent in December 2010 relative to December 2009.

Ebow Duncan, Head of Economic and Industrial Statistics of the Ghana Statistical Service, told a press conference in Accra on Wednesday that the decline in the rate in December did not mean a slip in the general price level. "Though the rate for December is lower than November it does not mea= n that the general price levels are reducing," he said.

This, Mr Duncan said, was explained by the significant monthly increas= e in the general price level in December to 1.13 per cent compared to 0.47 pe= r cent in November. He said the rate for December was helped by the downward pressure on both food and non-food prices. Food inflation closed the year with an average of 4.5 per cent compare= d to non-food, which has been consistently higher with a rate of 11.22 per cent. On the impact of the recent fuel price hikes on future inflation, Mr Duncan said it would depend on how other sub-groups responded to the petroleum price increases.

Inflation rates in the regions for December ranged from 5.97 per cent in the Volta Region to 13.05 per cent in the Greater Accra Region. Six regions - Volta, Western, Brong Ahafo, Ashanti, Central and Easter= n - recorded inflation rates below the national rate of 8.58 per cent.