Inflation will return to single digit by June – BoG

Business News of Monday, 8 April 2013

Source: Citfmonline

Kofi Wampah Bog

The Bank of Ghana (BoG) says inflation is likely to return to single digit by the end of June this year. Inflation jumped from single to double digit in February after being in the singles for a while.

The last time the economy recorded double digit inflation was in June 2012 at 10.6% after which it kept fluctuating between 9 and 8 per cent then 8.8 per cent in January 2013.

It however soared to 10 percent in February.

The increase has been attributed to the recent hikes in petroleum prices as well as increases in the prices of some essential commodities.

Governor of the bank of Ghana Dr Henry Wampah however told Citi Business News, the figure is likely to reduce to single digit by the end of the second quarter of this year.

“Movement from 8.8% to 10% was mainly due to the hike in petroleum prices because the immediate effect will be to increase prices. But then, we have a path, and it follows the path. We expect that it may go up, but then towards the end of the second quarter we will start to see a decline.”

He added that “this period is also the period of the lean season so food prices are also not as low as they were. So we have all those effects acting together.”