Business News of Friday, 11 January 2019
The inflation rate for December 2018, increased marginally to 9.4 percent, from the 9.3 percent recorded in November 2018.
By this, government missed its 2018 end of year inflation target of 8.9 percent as set in the 2018 budget.
Inflation measures the rate of change in prices of goods and services over a period of time.
This means that there was a 0.1 percent growth rate in the general price level of goods and services that households acquire for the purpose of consumption from December 2017 to December 2018.
Announcing the final consumer inflation figures for 2018 at a press conference, the new Acting Government Statistician David Kombat mentioned that the non-food group inflation rate rose by 0.1 percentage point from 9.7% in November 2018 to 9.8% in December 2018 while the food group inflation rate also rose from 8.6% in November 2018 to 8.7%.
These were responsible for the rise in the overall rate of inflation in December 2018. He also highlighted some more reasons for the increase in the December rate.
“Four subgroups of the food and non-alcoholic beverages group recorded inflation rates higher than the group’s average rate of 8.7 percent.
The subgroups were Coffee, tea and cocoa 4 (13.5%), Fruits (11.4%), Meat and meat products (10.9%) and Mineral water, soft drinks, fruit and vegetable juices (9.2%).
Also five subgroups of the nonfood group recorded year-on-year inflation rates higher than the group’s average rate of 9.8 percent.
Transport (13.6%), Recreation and Culture (13.2%), Clothing and footwear (13.0%), Furnishing, Household Equipment and Routine Maintenance (11.6%) and Miscellaneous goods and services (10.0%).
Inflation was lowest in the Housing, Water, Electricity, Gas and Others Fuels subgroup (3.4%).”
Mr. Kombat also explained the dynamics around the inflation trends at the regional level.
“At the regional level, Upper West region recorded the highest regional combined inflation rate (11.4%). Transport (22.8%), Miscellaneous Goods and Services (13.4%), Clothing and Footwear (12.5%) and Recreation and Culture (11.5%) were responsible for the high inflation in the Upper West region.
The Upper West region recorded the highest regional non-food inflation rate (13.4%) due to a rise in inflation for the Transport subgroup, while the Ashanti region recorded the highest food inflation rate (9.5%) due to Coffee, tea and cocoa (14.2%), Oils and fats (12.1%), Vegetables (11.8%), Non-alcoholic beverages (11.1%) and Meat and meat products (10.8%).