Headline inflation fell into single digits in April when it reached 9.6 percent, year-on-year (y/y) – the lowest point in over five years.
The lower inflation point comes shortly before the next MPC meeting, strengthening the case for further policy rate relief, analysts believe.
Decreases in electricity tariffs, especially, in the month of April drove the consumer price inflation (CPI) down, Acting Government Statistician, Mr Baah Wadieh explained
The CPI dipped by 0.8 percentage point from the 10.4 percent recorded in March 2018.
The CPI measures the change over time in the general price level of goods and services that households acquire for the purpose of consumption.
At a press briefing, the Acting Government Statistician, Baah Wadieh noted that, the drop in the housing, water, electricity, gas and other fuel sub-group was mainly due to the deregulation in electricity.
“We observed that inflation for electricity fell from -0.1 percent [in March], to -17.5 percent in April; due to actual reduction of 17.5 percent in electricity tariff in April.”
This sub-group recorded a decrease of 3.4 percent, from 7.3 percent in March to 3.9 percent in April.
The Housing, Water, Electricity, Gas and Other Fuels subgroup recorded the lowest inflation in the non-food sub group.
Another sub-group that drove the overall fall of inflation was Transport. This recorded a drop of 8.9 percent from 18.4 percent in March to 9.5 percent in April.
The Non-food group recorded an inflation rate of 10.6 percent in the month, compared to the 11.8 percent recorded for March. Four subgroups recorded rates higher than the group’s average rate of 10.6 percent.
Clothing and footwear recorded the highest inflation rate of 17.2 percent, followed by Recreation and culture with 13.6 percent, Furnishings, household equipment and routine maintenance with 13.0 percent and miscellaneous goods and services with 12.3 percent.
The food and non-alcoholic beverages group recorded an inflation rate of 7.4 percent. This is 0.1 percentage point higher than the rate recorded in March 2018.
Six subgroups of the food and non-alcoholic beverages group recorded inflation rates higher than the group’s average rate of 7.4 percent.
At the regional level, the rates of inflation ranged from 8.2 percent in Upper East Region to 11.7 percent in Upper West Region.
Five regions; Upper West, Brong Ahafo, Western, Northern and Ashanti, recorded inflation rates above the national average rate of 9.6 percent. Upper East region recorded the lowest inflation rate of 8.2 percent.
By Joshua W. Amlanu