Inflation drops to 70-month low, records 9.5% in Oct …exceedS gov’t 2018 target of 9.8%

The rate at which the general price levels of goods and services increases, otherwise known as inflation, has dropped to 9.5 percent from the 9.8 percent recorded last month – making it the lowest in 5 years and 10 months.

The last time inflation saw a figure lower than the 9.5 percent was in January 2013 when it hit 8.8 percent.

According to figures from the Ghana Statistical Services (GSS), which were presented by the Acting Government Statistician, Baah Wadieh, the drop can be attributed to the non-food basket which recorded 9.5 percent inflation from the 9.8 percent in September.

The main price drivers of this component include transport, which recorded 13.9 percent; clothing and footwear 13.4 percent; recreation and culture 12.7 percent; furnishing, household equipment and routine maintenance 11. 9 percent.

However, the food basket saw a marginal rise from 8.7 percent in September to 8.9 percent. Main price drivers of this basket include coffee, tea and cocoa which recorded 13.1 percent; fruits 11.4 percent; food and food products 10.5 percent; mineral water, soft drinks, fruits vegetable juices 10.4 percent; meat and meat products 10.1 percent; and vegetables 9.6 percent.

In regional terms, five regions – Upper West, Brong Ahafo, Western, Northern and Ashanti—all recorded rates higher than the national average of 9.5 percent.

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The Upper West Region recorded the highest year-on-year inflation rate of 11.6 percent, followed by Brong Ahafo with 10.4 percent, whereas, the Upper East Region recorded the lowest rate of 8.3 percent.

The inflation rate for imported items of 11.1 percent was 2.3 percentage points higher than that of locally produced items, which recorded a rate of 8.8 percent.

The October inflation rate of 9.5 percent has beaten government’s 2019 inflation target of 9.8 percent. With this development, it is expected that government will – in the 2019 budget to be presented today – set a target higher than this year’s in order to meet the medium-term target of 8±2.

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