Inflation increases to 16.9% in Aug

 

The year-on-year producer price inflation rate for all industry for the month of August recorded 16.9%, representing 0.2% point increase relative to the rate in July of 16.7%.

The month-on-month change in producer price index between July and August 2016 was 0.2%.

Inflation for imported items also rose from 15.2 in July to 17.3 in August.

Locally produced items however dropped from 17.3% in July to 16.7% in August.

Greater Accra recorded the highest combined inflation rate of 20.1%, Ashanti region came second with 18.5% while Upper East recorded the lowest of 11.8%.

The non-food and non-alcoholic beverages group recorded a year –on- year inflation rate of 8.5%.

This is 0.1 percentage point lower than the rate recorded in July 2016.

The non -food inflation group recorded a year -on -year inflation rate of 21.5 % in August 2016, compared to the 21.2% recorded for July 2016.

Price drivers for the non-food items included; education, housing, water, transport  and among others while the price drivers for the food inflation included vegetables, mineral water, coffee, tea and Cocoa.

Speaking to the press in Accra yesterday, Government Statistician, Philomena Nyarko, blamed the rise in the August inflation rate on the non- food sector and the increase in import inflation rate.

According to her, prices of goods were  on the ascendancy due to uncertainties around the impending elections.

She explained that on a monthly basis, consumer prices fell 0.6 %, following a 0.9% rise in the previous month.

“Cost of food dropped 1.4%, housing and utilities went down 0.5% and transport edged down 0.1%,” she noted.

She stated that additional pressure came from: clothing and footwear 22.8 % from 24.3%; recreation and culture 27.2% from 28.3%; furnishings and household items 22% from 23%.

Ghana is currently implementing a three-year aid programme with the International Monetary Fund (IMF) to remedy fiscal problems that include inflation that for years has exceeded government targets.

 

Source: Ghana/todaygh.com/Evans Obiri Appiah

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