Locally produced items still pricey

Latest figures released by the Ghana Statistical Service (GSS) have indicated that the rate of inflation for locally-produced goods was 2.1 percent higher than inflation for imported items.

Dr Philomena Nyarko, Government Statistician, who disclosed this to the media yesterday in Accra during the announcement of the Consumer Price Index (CPI) for July, this year, said the inflation rate for locally-produced items was 17.3 percent in July compared to 18.9 percent recorded in June while the inflation rate for imported items was 15.2 percent in July, compared to 17.1 percent recorded in June.

The prices of locally produced items are costly due to the high cost of raw materials procured locally by manufacturers while imported items, which are produced on mass scale, are cheaper. This has rendered most local companies uncompetitive while some have folded up.

Dr Nyarko announced that the fall in food prices and the stability of the cedi in July increased the rate of inflation to 16.7 percent from 18.4 percent in June, this year.

The monthly change rate was 0.9 percent in July 2016 compared to 1.3 percent recorded in June this year.

Food inflation was 8.6 percent in July same as what was recorded in June.

However, the year-on-year non-food inflation rate dropped to 21. 2 percent from 24.1 percent in the year.

The main price drivers for the non-food inflation rate were Education, 35.4 percent, Recreation and Culture, 28.3 percent, Transport, 25.4 percent, Housing, Water, Electricity, Gas and other fuels, 25.4 percent Clothing and Foot wear, 24.3 percent and furnishing households equipment and routine maintenance, 23.0 percent.

At the regional level, two regions – Greater Accra and Ashanti – recorded inflation rates higher than the national average of 16.7 percent.

Greater Accra recorded the highest inflation of 21.3 percent followed by Ashanti region with 18.0 percent while the Upper East region recorded the lowest inflation rate of 10.0 percent.