Graphic Business News

Inflation inches to 10% in June

By: Daniel Ofosu Dwamena

FOR the first time in 2018, the average change in prices of goods and services, measured by inflation, has risen to 10 per cent in June from the 9.8 per cent recorded in May this year.

The increase was influenced by the non-food inflation basket, which rose from 10.9 per cent in May to 11.2 per cent in June.

The acting Government Statistician, Mr Baah Wadieh, said at a news conference in Accra that the strong inflation rate experienced in the non-food basket could be blamed on the recent 10 per cent increase in transportation fares.

Causes of rise
While the non-food inflation rate went up by 0.3 per centage point to the 10.9 per cent recorded in May, food and non-alcoholic beverages group recorded a year-on-year inflation rate of 7.3 per cent, representing a 0.3 percentage point lower than the rate recorded in the same period last year.

 Mr Wadieh explained that six sub-groups of the food and non-alcoholic beverages g

The groups are — coffee, tea and cocoa; fruits; meat and meat products; mineral water, soft drinks, fruits and other unspecified non-alcoholic beverages and vegetables.

The year-on-year non-food inflation rate for June 2018, he said, was 11.2 per cent compared with the rate of 10.9 per cent recorded in May 2018.

“The year-on-year food inflation rate for June 2018 was 7.3 per cent, compared with 7.8 per cent recorded in May 2018 and the year-on-year non-food inflation rate of 11.2 per cent was 2.6 percentage point higher than that of locally produced items which stood at 9.2 per cent,” he said.

Main drivers
Mr Wadieh explained that clothing and footwear (16.1 per cent), transport (15.5 per cent), recreation and culture (13.8 per cent), furnishing, household equipment and routine maintenance (12.7 per cent) were the main drivers of inflation rate in the non-food sub-group.

He also stated that transport was a major contributing factor that anchored the non-food inflation rate at 11.2 per cent.

Regional difference
Mr Wadieh said the Upper East and West regions recorded the lowest and highest regional inflation rates.

While the Upper East Region recorded the lowest rate of 8.1 per cent, June inflation in the Upper West Region was 11.9 per cent, being the highest in the regions.

The government statistician added that beyond the Upper West Region, the Brong Ahafo, Greater Accra and Ashanti regions also recorded inflation rates higher than the national average of 10 per cent.

The Northern Region, however, recorded the same rate as the national average.

About CPI
The Consumer Price Index (CPI), which is computed by the GSS, measures the change over time in general price levels of goods and services that households acquire for the purpose of consumption.

In computing the CPI, prices in 2012, the base year, are used as reference.