Accra, Sept. 12, GNA - The annual rate of inflation for August dropped by 0.21 percentage point to 18.10 per cent, the second consecutive fall since the beginning of the year.
In July, the rate fell by 0.1 percentage point to 18.31 per cent. Inflation had consistently risen from 13.8 per cent in March to 18.41 per cent as at the end of June, buoyed by high food and crude oil prices.
Mr. Ebo Duncan, Head Economic Statistics Division, Ghana Statistical Service said good harvest and falling prices of food items, mostly in the rural areas accounted for the marginal decline. The level of inflation continues to be higher for non-food than the food group, however, rate of increase for the food group had been higher.
The rate of inflation for the non-food group, which began the year at 14.40 percent, increased to 18.50 percent in August, representing an eight-month (January-Auguts) increase of 4.10 percentages point. For the same period, the food group rose from 10.64 percent in January to 17.56 percent, constituting an eight-month increase of 6.92 percentage points.
The contribution of the non-food group to the inflation rate in August was 2.30 percentage points higher than that of the food group, each contributing 10.19 and 7.89 percent, respectively. In the non-food group, hotels, cafes and restaurants, transport, housing, water etc contributed more than 1 percentage point to the rate of inflation for August. Fish, bread and cereals added more than one percentage point to the rate of inflation for August in the food category. Mr Duncan said it was difficult to predict the outcome for the next few months based on previous trends because of the inconsistencies in the pattern.
"All things being equal, it is likely the declining trend in inflation will continue," he said. On regional inflation trend, six regions recorded inflation rates above the national rate of 18. 10 percent. Volta Region recorded the highest of 24.72 percent while Greater Accra Region has the lowest of 13.6 percent.