Business News Fri, 12 Dec 2008

Inflation inches up in November

Accra, Dec. 12, GNA - The continuous fall in the inflation rate since July suffered a reverse, as the rate inched up by 0.14 percentage points over that of October, the Ghana Statistical Service said on Friday. The annual rate of inflation for November was 17.44 per cent, up from October's rate of 17.30 per cent.

Inflation consistently rose in the first half of the year from 12.81 per cent in January to 18.41 per cent in June 2008 buoyed by high food and crude oil prices, but started reducing until November. Mr Ebo Duncan, Head Economic Statistics Division, Ghana Statistical Service, said the marginal rise might have been due to the high level of inflation in the non-food group. The contribution of the non-food group to the inflation rate in November was 10.23 percentage points. The food group contributed 7.21 per cent.

In the non-food group, hotels, cafes and restaurants, furnishing, household equipment transport, housing and water, among others contributed to the rate of inflation for November. The food group, fish, bread, cereals and vegetables added more than one percentage point to the rate of inflation for November.


Mr Duncan said though it was difficult to predict the outcome for December, the rate was likely to go up because of the Christmas festivities and high imports, especially in the face of a weakening exchange rate of the cedi against major international currencies. However, he said, the recent reduction in fuel prices was likely to counteract any sharp increase in the rate of inflation.

On regional inflation trend, seven regions recorded inflation rates above the national rate of 17.44 per cent. Northern Region recorded the highest of 23.40 per cent while Volta Region recorded the lowest of 14.72 per cent.

Source: GNA