Inflation for the first time this year has recorded a slight jump from that of the last month of last year.
The annual inflation for the month of January in Ghana increased slightly to 8. 7 percent from 8. 6 percent recorded in December of last year. The monthly change for January 2012 was 2. 2 percent, which is the highest within the 12 months period.
Analysts had predicted that the rate may start recording an increase from the beginning of this year due to the spill power effects of spending from the festive season.
Marginal decrease in the price of petroleum prices however is not expected to have any significant effect on inflation in the coming months.
The Head of Statistics and Research Service, Magnus Duncan in his explanation said: ï¿½For instance, if there hasnï¿½t been any increase in fuel prices, the year on year inflation rate will be zero and so it means that immediately prices increases, the figure jumps and it will stay there until new change comes or a whole year elapses. ï¿½
Meanwhile, the Monetary Policy Committee of the Bank of Ghana has increased the policy rate to 13. 5%. This was after three days of deliberations by the MPC analyzing the state of the economy.
The policy rate has implications on interest rate determination. With the increase from the 12. 5% to 13. 5% this could have implications for businessmen if banks decide to maintain the already high rates or increase.
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