Accra, April 9, GNA - The annual inflation rate continues its upward swing, reaching 20.53 percent in March, up from 20.34 percent a month earlier, the Ghana Statistical Service said on Thursday. Briefing the press on the latest figures, Dr Grace Bediako, Government Statistician, said the easing of the monthly rate of inflation might be an indication of slow pace in the increases. The monthly rate of inflation recorded in March 2009 was 1.95 percent down from February's two percent.

"Currently, it is pretty hard to predict the rate. We expect it to go down unless something on the international scene brings it up," Dr Bediako said.

The rate of inflation has been on the increase for five consecutive months from November 2008 to March 2009, driven primarily by the non-food group, such as hotels, restaurants and cafes. The contributions of the non-food and food groups to the inflation rate in March 2009 were 12.12 per cent and 8.41 percent respectively. In the non-food category, hotels, cafes and restaurants, furnishing, household equipment and routine maintenance, health, clothing and footwear, among others contributed more than one percentage point to the annual rate of inflation.

Vegetables, including potatoes and other tuber vegetables, fish, bread and cereals contributed highest in the food group. The rate of inflation was higher in the urban than in the rural areas on account of increases in inflationary pressures in the Ashanti and Greater Accra Regions, which are the most populated. The urban inflation stood at 22.83 percent while rural inflation was 20.45 percent.

Inflation rates recorded in the regions ranged from 15.29 percent in the Western Region to 25.55 percent in the Northern Region. Five regions recorded inflation rates above the national rate of 20.53 percent. 9 April 09