Business News of Wednesday, 13 September 2017

Source: Myjoyonline.com

Inflation for August shoots up to 12.3%

Inflation rate for the month of August 2017 rose to 12.3 percent from 11.9 percent recorded in July, 2017, according to the latest figures released by the Ghana Statistical Service.

According to the Ghana Statistical Service, the increase in the rate was as a result of a base drift effect, (an abnormality in calculating inflation), the introduction of flat VAT rate scheme and fuel price adjustments.

“The flat VAT rate imposed by government affected a lot of items particularly imported items”, Acting Government Statistician, Baah Wadieh told JoyBusiness.

The Food and Non-Food Inflation components recorded 7.4% and 14.7% respectively for the month of August as compared to 7.2% and 14.7% for the month of July, 2017.

The Upper West region recorded the highest inflation rate with 13.4% (18.1% for Non-Food and 4.1% for Food).

Greater Accra region had the next highest inflation with 13.1% and Upper East recorded a rate of 11.0% which is the lowest amongst the regions. Also inflation of imported products was pegged at 13.8% while locally produced items was pegged at 11.7%.

In their computations, the Statistical Service observed that the main “price drivers” that influenced the inflation rate for non-food inflation were Transport (22.3%), Recreation and Culture (19.5%), Furnishing, Household Equipment and Routine Maintenance (19.0%), Clothing and Footwear (16.6%) and Miscellaneous goods and services (16.1%).

For food inflation, the “price drivers” were fish and sea food (14.6%), meat and meat products (9.5%) and Coffee, tea and cocoa (7.8%).

Though the economy experienced an increase in the year-on-year inflation, the month-on-month inflation was down by 0.2% for the month of August.

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