Inflation Drops For The 7th Time
The country’s inflation rate dropped from 15.9 per cent in December last year to 14.78 per cent in January this year. This figure is the lowest for the past 12 months, a drop by 5.08 per cent of last year’s figure of 19.86 per cent.
This is the seventh consecutive month that inflation has dropped since January 2009. In that month, the figure stood at 19.86 per cent. From then on, it continued to rise till June when it hit 20.74 per cent, the highest for the year.
Dr Grace Bediako, Government Statistician at a press briefing yesterday on the consumer price index for January 2010 attributed the decline in inflation to economical down trends.
“Government have contributed immensely to help boost the economy and I hope that things would pick up “she noted. “The drop in inflation brightens the chance for further drop in interest rate due to be announced by the Bank of Ghana at its next Monetary Policy Committee meeting to be held in Accra on Friday.
Inflation measures the cost of goods and services in the country for a period. High interest rates have discouraged activity on the Ghana Stock Exchange and also account for the high cost of doing business in the country.
According to Mrs. Grace Bediako, “inflation has been primarily driven by the non-food sector, with culture and recreation leading the chart which constituted 18.79 per cent of the consumer price index basket.”
On regional inflation, the Government Statistician said Upper East and Upper West Regions recorded the highest inflation of 24.57 per cent, with the Northern Region recording the lowest of 9.87 per cent.
She attributed the high inflation rate in Upper West and Upper East regions to Dagbon crisis in the Northern region and hoped that things would be well next years. The Central Region which placed second had 22.68 per cent, Volta Region 19.93 per cent, Ashanti Region, 15.52 per cent; Brong Ahafo region, 14.20 per cent; Western Region, 13.75 percent; Greater Accra Region, 12.57 and Eastern Region, 10.15 per cent and Northern region recording the lowest of 9.87 per cent.
The relatively high inflation rate has for months discouraged activities on the Ghanaian market and that businesses are looking forward for better market prices.