Dr Philomena Nyarko
The year-on-year inflation rate for August 2016 was 16.9 percent compared to 16.7 percent recorded in July 2016.
The monthly change rate in August 2016 was -0.6 percent while that for July 2016 was 0.9 percent.
Year-on-year non-food inflation rate for August 2016 was 21.5 percent compared to 21.2 percent recorded in July 2016.
Dr Philomena Nyarko, Government Statistician, who disclosed this to the media in Accra, noted that the year-on-year food inflation rate for August 2016 was 8.5 percent compared to 8.6 percent recorded in July 2016.
She stated that the year-on-year non-food inflation rate (21.5 percent) was about two and a half times that of the food inflation rate (8.5 percent).
“In August 2016, the year-on-year inflation rate for imported items (17.3 percent) was 0.6 percentage point higher than that of locally produced items (16.7 percent).
The main “price drivers” for the non-food inflation rate were Education (3 percent); Housing, water, electricity, gas and other fuels (28.1 percent); Transport (27.4 percent); Recreation and culture (27.2 percent); Clothing and footwear (22.8 percent) and Furnishings, household equipment and routine maintenance (22.0 percent).”
The Government Statistician said that the “price drivers” for the food inflation rate were Vegetables (11.5 percent); Mineral water, soft drinks, fruit and vegetable juices (10.6 percent); Oils and fats (10.1 percent); Coffee, tea and cocoa (9.7 percent); Meat and meat products (9.6 percent) and Fruits (9.1 percent).
Two regions (Greater Accra and Ashanti) recorded inflation rates higher than the national average of 16.9 percent.
Greater Accra Region recorded the highest year-on-year inflation rate of 20.1 percent followed by the Ashanti region with 18.5 percent while the Upper East Region recorded the lowest (11.8 percent).
Is this year’s target achievable?
Government has projected that inflation would reduce to 10.1 percent by end of this year. In 2015, both government and the Bank of Ghana (BoG) missed their inflation targets.
While government projected an end-year 2015 revised inflation target from 11.5 percent to 13.7 percent for the year, the Bank of Ghana predicted an 8 percent plus or minus 2 but later revised to 13.5 percent.
Consumer prices surged to 19 percent year-on-year in January 2016, compared to a 17.7 percent recorded in December 2015. This was boosted mainly by prices of fuel, food and utilities after government sanctioned increases in electricity and water tariffs in December 2015.
In February, inflation reduced to 18.5 percent while for March it rose to 19.2 percent.
In April, it declined to 18.7 percent inching up to 18.9 percent in May. June saw another reduction to 18.4 percent, and a further reduction to 16.7 percent in July.
Some economists have expressed doubts about government’s ability to tame inflation and meet its end of year target of 10.1 percent for this year.
By Samuel Boadi