Ghana on course to achieving single digit as inflation drops

Ghana is on course to achieving her stated objective of single digit inflation this year as inflation drops to a record 11.66 per cent in April, 2010.

Government's sound macroeconomic policy characterised by fiscal and monetary prudence in 2009 and 2010 has kept inflation expectations well anchored.

A statement issued in Accra on Wednesday and signed by Mr. Abdul Hakim Ahmed, Media Laison at the Ministry of Finance and Economic Planning said "Overall 12-month inflation rate slowed down during the second half of the year 2009 from 20.74 per cent in June 2009 to 15.91 per cent in December 2009."

However, it said after peaking in June 2009 at 20.7 per cent, the third quarter recorded three successive months of declines in headline inflation to settle at 18.4 per cent in September 2009.

In October 2009, inflation eased further to 18.0 per cent, and the rate continued to point to easing inflationary pressures.

By the end of December 2009, headline inflation was 15.97 per cent.

The latest figures for headline inflation; shows that the disinflation process is still on course.

According to the Statistical Service, April 2010 inflation rate released on Wednesday, May 12 was 11.66 per cent.

The rate is 1.66 percentage points lower than that of March 2010 (13.32 per cent). This represents the tenth consecutive month of decline in the rate since it peaked at 20.7 per cent in June 2009.

The statement said the stability of the cedi witnessed from July last year also contributed to the impressive performance.

Dr. Kwabena Duffuor, Minister of Finance and Economic Planning, said to achieve the Better Ghana Agenda, government was resolute in its quest to maintain and entrenched sound public finance through both monetary and fiscal discipline.

"The micro-economic stability we are seeing in the last 10 months in Ghana is an essential pre-condition for sustainable economic growth and job creation. It allows individuals, business and the government to plan more effectively for the future".

"Generally, countries which maintain relatively stable micro-economic variables such as inflation, unemployment, interest rates, exchange rates and the balance of payments tend to display higher long-term growth rates", Dr. Duffuor added.

GNA