Inflation Rate Drops

The inflation rate has dropped to 18.04 per cent in October, representing a decrease of 0.33 percentage points from the inflation rate of 18.37 per cent for September 2009, the Consumer Price Index (CPI) of the Ghana Statistical Service (GSS) has indicated.

The drop, according to Mr. Ebow Ducan , Director, Economic Statistics Division of the GSS, means that general price levels in September were higher than in October, with prices falling by -0.95 per cent.

Mr. Duncan, who was speaking at a news conference in Accra last Friday, said inflation has been relatively high in 2009 (averaging 19.86 per cent) compared to 16.25 per cent in 2008, the highest rate having been recorded in June and the lowest of 18.04 per cent in October.

By the statistics, Mr. Duncan said, inflation rates in the regions range from 12.67 per cent in the Greater Accra Region to 27.12 per cent in the Upper East and West Regions, with four regions (Ashanti, Volta, Central and Upper East and West) recording inflation rates above the national rate of 18.04 per cent.

Brong Ahafo Region, the release indicates, is the region with the highest monthly change rate, while the Upper East and West regions are the regions with the highest inflation yearly change rate.

The consumer Price Index (CPI) measures the average percentage change of the general price levels in the country as experienced by consumers with reference to the price levels in the country as experienced by consumers with reference to the price levels in year 2002.

On the other hand, the yearly inflation (or year-on-year inflation) is the percentage change in CPI over the twelve-month period while the monthly inflation (month-to-month inflation) is the percentage change between the months in reference to the previous month.

The CPI has been driven by the non-food sub-sector, comprising recreation and culture, health and furnishing, household equipment, housing, water and electricity and transport and communication, which constitutes 55.09 per cent for the CPI basket.

In October 2009, the inflation rate for the non-food group according to the CPI was 21.15 per cent as against 13.53 per cent for the food group. The corresponding figures for September 2009 were 22.38 per cent and 12.78 per cent for the non-food and food respectively.

Source: ISD (G.D. Zaney)