Ghana’s inflation rate drops by 1.7 per cent

11 Aug 2016
Financial Nigeria

Summary

Ghana’s CPI fell for the second consecutive month in July to 16.7 per cent, compared with 18.4 per cent in the previous month.

Ghanaian President John Dramani Mahama

Ghana’s Consumer Price Index (CPI) fell for the second consecutive month in July to 16.7 per cent year-on-year from 18.4 per cent recorded in the previous month, according to a statement from the Ghana Statistical Service (GSS).

"The main reason why we are seeing a drop in July is as a result of base drift and seasonality effects, influenced by stability of the cedi and the beginning of good harvest," Philomena Nyarko, the Government Statistician and CEO of the GSS, said in a press conference in Accra on Wednesday.

Food inflation stood at 8.6 per cent year-on-year in July, the same rate as recorded in June. Six subgroups of the food and non-alcoholic beverages group recorded inflation rates higher than the group’s average rate of 8.6 per cent: vegetables; oils and fats; mineral water, soft drinks, etc; coffee, tea, and cocoa; fruits; meats and meat products.

Non-food inflation in July was at 21.2 per cent, compared with 24.1 per cent in the previous month. Six subgroups recorded inflation rates higher than the group’s average rate of 21.2 per cent: Education; recreation and culture; transport; housing, water, electricity, gas, etc; clothing and footwear; and furnishings, household equipment, etc.

Last month, the Bank of Ghana retained its benchmark interest rate at 26 per cent, stating that the risks to inflation and growth are balanced despite recent increases in the prices of petroleum products.

Ghana has been implementing a $1 billion three year programme approved by International Monetary Fund last year to check the sliding cedi, high inflation rate, and to tackle the country’s growing debt. The West African country will go to the polls in November this year with President John Dramani Mahama vying for a second term in office.


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