Following a sharp appreciation of the value of the cedi to the dollar, and a reduction in fuel prices, though transport fares will remain the same, inflation could rise further in the next month or two and then witness a marginal decline if indications are real.
The average change in price of goods and service within a period went up to 17.1% in June 2015 as 16.9% recorded in May 2015.
According to the Ghana Statistical Service, the depreciation of the cedi and higher transportation costs during the period triggered inflation to rise.
The structural imbalance in the Ghanaian economy, which is being corrected by the IMF bailout programme, also triggered the rising inflation.
Food and non-alcoholic beverages recorded a year-on-year inflation rate of 7.4% in June 2014 while the non-food component recorded an inflation rate of 23.6% in June 2015, compared with 23.4% in May 2015.
Seven sub-groups of the food and non-alcoholic beverages recorded inflation rates higher than the group’s average rate of 7.4%. They include coffee, tea and cocoa; mineral water, soft drinks and fruit; sugar, jam, honey, chocolate and others, food products, meat and meat products; milk, cheese and eggs, as well as cereals and cereal products.
With regard to the non-food group, four sub-groups recorded year-on-year inflation rates higher than the group’s average of 23.6%. Transport recorded the highest inflation rate of 25.5%, followed by housing, water, electricity, gas and other fuels (24.8%), education (24.6%) and clothing and footwear (24.3%). Inflation was lowest in the communication sub-group.
The Central Region recorded the highest inflation rate of 19.5% in June 2015, followed by the Ashanti Region with an inflation of 18.2%. Northern and Upper West recorded the least inflation of 14.8%. Last month, the International Monetary Fund forecast 2015 inflation at 13-14%, up from its previous target of 12.5%, but said the country was likely to meet its 2016 target of 8%.
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