Inflation rate falls to 10.4 per cent

Accra, March 9, GNA - The rate of inflation for February based on the new Consumer Price Index was 10.4 per cent, representing a marginal decline of 0.5 per cent from the January figure of 10.9 per cent.

The new CPI series moves the base year from September 1997 to the average prices of 2002 and also revises the weights on the various items in the basket of goods to reflect current expenditure pattern. Professor Nicholas Nuamah-Nsowah, Acting Government Statistician, told a press briefing in Accra that the national CPI for February was 208.62 with respect to the 2002 base year. It is this index when compared with that of February 2006 (188.94) that gives the point-to-point inflation rate of 10.4 per cent. He said the monthly change/rate of inflation, which is the CPI of February 2007, compared with that of the previous month January gave a figure of 1.2 per cent.


Explaining Prof. Nuamah-Nsowah said the national CPI increased by 2.55 points from 206.08 in January to 208.62 in February with food and beverages group contributing 1.14 percentage points while the non-food groups altogether contributed 1.41 percentage points to the change in the national index. He said the food and beverages group, vegetables, potatoes and other tubers had the highest 0.42 points upward effect followed by fruits 0.30 points while cheese and eggs group had a lowest negative effect (-0.05 points). Within the non-food group, cafes and restaurants contributed the highest upward movement of the index with 0.68 points followed by health group with 0.33 points. The communication group recorded no change in prices in February 2007.

Prof. Nuamah-Nsowah also announced regional inflation rates, the first time it has been computed. The Upper Region (Upper West and East) had the highest inflation of 16.5 per cent for February. Other rates are Brong-Ahafo with 13.8 per cent, Greater Accra 12.1 per cent and Western region with 10.9 per cent. The rest are Volta 8.8 per cent, Ashanti 8.8 per cent, Northern 8.6 per cent, Eastern 8.6 per cent and Central 7.9 per cent. 09 March 07