Inflation now 9.3%

The average change in the prices of goods and services, measured by inflation, had declined to 9.3 per cent in November this year, the lowest in six years.

The year-on-year figure for November was also lower than the 9.5 per cent rate recorded for October this year.

Although the current rate only rivals the 9.3 per cent recorded in January 2013, it is still below the 8.4 per cent rate recorded in July 2011.

At a news conference in Accra on Wednesday, the acting Government Statistician, Mr Baah Wadie, said that monthly inflation, which measures the average change in prices on a monthly basis, however, remained the same at 0.7 per cent.

 Causes of annual decline

Mr Wadie said the decline in the November rate was influenced by similar declines in both the food and non-food inflation baskets.

He said while the inflation in the food basket declined from 8.9 per cent in October to 8.6 per cent in November, the non-food inflation rate decreased to 9.7 per cent in November from 9.8 per cent in October.

He, however, said while annual inflation rate for imported items remained the same at 11.1 per cent for November, that of locally produced goods declined from 8.8 per cent in October to 8.6 per cent last month.

He explained that the price drivers for the non-food inflation rate were transport (13.7 per cent), recreation and culture (13.3 per cent), clothing and footwear (12.6 per cent), furnishing, household equipment and routine maintenance (11.4 per cent) and miscellaneous goods and services  (10.3 per cent).

Those items, he said, recorded annual rates higher than the group’s rate.

With regard to food inflation, the acting Government Statistician said the price drivers were coffee, tea and cocoa (12.8 per cent), fruits (11.0 per cent), meat and meat products (10.2 per cent), mineral water, soft drinks, fruit and vegetable juices (9.4 per cent), food and food products (9.4 per cent) and vegetables (9.1 per cent).

 Regional inflation

On the regional front, Mr Wadie said five regions (Upper West, Brong  Ahafo, Western, Ashanti and Northern) recorded inflation rates above the national average rate of 9.3 per cent.  

 While the Upper West Region recorded the highest annual rate of 11.5 per cent, the Upper East Region recorded the lowest rate of 7.6 per cent.

He added that the Ashanti Region recorded the highest food inflation rate of 9.3 per cent in November 2018.

While annual inflation measures average price changes over a 12-month period (November 2018 and November 2017), monthly inflation rate compares the average price changes over a two-month period (November and October 2018).