Inflation Rate is 10.68 per cent, moves closer to single-digit

The annual inflation rate fell to 10.68 per cent in May from 11.66 per cent in April, the eleventh monthly fall, moving the country closer to the single digit target, Ghana Statistical Service (GSS) said on Wednesday.

The rate of inflation has been on the decline since July 2009 with cumulative drop between January 2010 and May 2010 totalling 4.10 percentage points (from 14.78 per cent to 10.68 per cent).

"The food and non-alcoholic beverages group has been recording single digit inflation rate since January 2010. The non-food inflation rate on the other hand has been more than two times higher," Dr Grace Bediako, Government Statistician, told journalists at a press conference in Accra.

Inflation in the non-food group, which accounts for 55.09 per cent of average household expenditure, has six out of 11 of its sub-groups recording inflation rates above the group average of 14.98 per cent.

Recreation and culture (30.81 per cent), hotel and restaurants (20.75 per cent) and alcoholic beverages, tobacco and narcotics (20.39 per cent) are among the sub-groups that recorded high inflation rates.

The food group, which has a weight of 44.91 per cent, sub-groups with the highest inflation rates are sugar, jam, honey, syrups, chocolate and confectionery.

Inflation rates in the regions range from 3.58 per cent in Eastern Region to 18.87 per cent in Upper East and West Regions.

Two regions Greater Accra and Eastern recorded inflation rates below the national rate of 10.68 per cent.

On the likely effect of the recent hike in utility tariffs, Dr Bediako said the impact might be minimal unless its effect was translated by producers in price increases on the market.

GNA