ITHE YEAR-on-year inflation rate as measured by the CPI was 9.4 per cent in May 2019, down by 0.1 percentage point from the 9.5 per cent recorded in April 2019.
The monthly change rate for May 2019 was 0.9 per cent compared to the 1.1 per cent recorded for April 2019.
Several factors contributed to the fall in the rate of inflation in May 2019 compared to April 2019. The major factors being favourable weather pattern, government policy on planting for food and jobs, exchange rate stability and others.
The food and non-alcoholic beverages group recorded a year-on-year inflation rate of 6.7 per cent. This was 1.1 percentage point lower than the rate recorded in April 2019. Five sub-groups of the food and non-alcoholic beverages group recorded inflation rates higher than the group’s average rate of 6.7 per cent.
The fall in the inflation rate of this group was due to the fall in the inflation rate recorded for vegetables, fish and sea food and meat and meat products sub-groups.
The vegetables sub-group recorded the highest fall in the rate among the sub-groups of the food and non-alcoholic beverages group.
“Within the vegetables sub-group, lower inflation rates for May compared to April 2019 were recorded for yam (-2.8 per cent), cassava (-2.4 per cent), cocoyam (-1.4 per cent), okro (-1.2 per cent) and tomatoes (-1.1% per cent),” the Ghana Statistical Service (GSS) stated.
The Non-food group recorded a year-on-year inflation rate of 10.6 per cent in May 2019, compared to 10.4 per cent recorded for April 2019. Four sub-groups recorded year-on-year inflation rates higher than the group’s average rate of 10.6 per cent.
Clothing and footwear, recreation and culture recorded the highest inflation rate of 15.0 per cent followed byfurnishings, household equipment and routinemaintenance with 14.5 per cent, and transport with 12.5 per cent. Inflation was lowest in the communications sub sector with (6.1 per cent).
For the furnishings, household equipment and routine maintenance sub-group, it recorded the highest rise by 1.7 percentage points from 12.8 per cent in April to 14.5 per cent in May 2019; while the health sub-group recorded a rise of 1.2 percentage points. The alcoholic beverages, tobacco and narcotics and recreation and culture sub-groups recorded a rise of 0.9 percentage points each.
At the regional level, the Upper West Region recorded the highest combined inflation rate (11.1 per cent). These were recorded for the transport (21.2 per cent); furnishings, household equipment and routine maintenance (13.2 per cent); miscellaneous goods and services (12.6 per cent) and clothing and footwear (12.3 per cent) sub-sectors.
Again, the Upper West Region recorded the highest regional non-food inflation rate (13.8 per cent) due to a rise in inflation for the transport sub-group (21.2 per cent).
The Ashanti Region recorded the highest food inflation rate of 7.3 per cent in May 2019 while the coffee, tea and cocoa sub-group recorded the highest inflation rate of 17.4 per cent.
A business desk report