Consumer inflation rises marginally

Consumer inflation has recorded a slight increase in October 2019, following two consecutive months of slowing down, which ended in September 2019.

According to the latest data released by the Ghana Statistical Service (GSS) on Wednesday, the year-on-year inflation rate for October increased slightly to 7.7 percent, from the 7.6 percent recorded in September 2019.

The Government Statistician, Professor Samuel Kobina Annim noted that inflation was predominantly driven by food and transportation, even though the contribution of food to overall inflation went down.

“Due to its relative importance in consumption, Food is still the main driver of inflation in Ghana, but less so than in the two previous months. Compared to previous months, Transport is now a larger driver of inflation. This is mostly due to increased prices in both bus fares and fuels,” Prof. Annim said.

The Consumer Price Index (CPI) measures the change over time in the general price level of goods and services that households acquire for the purpose of consumption.

Food and non-alcoholic beverages recorded a year-on-year inflation rate of 7.0 percent, representing 1.5 percentage points lower than what was recorded in September 2019 at 8.5 percent, whereas the non-food group recorded an inflation rate of 8.2 percent.

Alcoholic beverages, tobacco, and narcotics recorded 13.2 percent while transport recorded 12.9 percent.

Prof. Annim said between September and October 2019, the price level of food and non-alcoholic beverages went down slightly by -1.2 percent. This decline was predominantly driven by a decline in price levels of vegetables and fruits.

The inflation of imported goods was 8.9 percent while that of local goods was 5.9 percent on average.

On a regional basis, three regions recorded inflation rates above the national average of 7.7 percent and these were: Greater Accra, 11.8 percent, Central 9.2 percent, and Volta, 8.9 percent.

Upper East Region recorded the lowest year-on-year inflation rate of 3.6 percent in October 2019.