Inflation eases further, drops to 13.3% in January

Ghana’s inflation for the first month of  2017, January recorded 13.3 percent.

The figure dropped by 2.8 percent from the 15.4 percent recorded in December 2016.

Ghana started 2016 with an inflation of 19 percent; increasing to 19.2 percent in March and further increasing to 18.9 percent in May and subsequently 17.2 percent in September and ended the year with a drop at 15.4 percent.

According to the Ghana Statistical Service, food inflation dropped to 7 percent while the non food inflation also dropped to 16.6 percent in January, 2017.

The Upper West region recorded the highest combined inflation of 14.0 percent with the Volta region recording the lowest regional inflation of 11.6 percent.

The Acting Government Statistician, Baah Wadieh also explained that the inflation for January 2017 is the lowest since December 2013.

Some economists had earlier projected a drop in inflation to single digits in the short to medium term.

Economist Professor Godfred Bokpin had told Citi Business News volatilities with the main price drivers of inflation such as utility prices and transport fares were weak and this will drive inflation down.

“As a result the major drivers do not exhibit higher volatility going forward and for which reason I think the threat of inflation are not significant,” he said.

“If you look at the projections, it looks quite likely that we will be entering the zone of single digit inflation anytime from now and for that reason we need to orient the policy framework towards that as well,” Professor Bokpin added.

The Bank of Ghana whose core mandate is inflation targeting is confident of achieving its inflation target of 8 percent plus or minus 2.

By:  Pius Amihere Eduku/citibusinessnews.com/Ghana

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