February 2016 inflation drops to 18.5 %

Inflation for the second month of the year has decreased by 0.5 percent. Inflation for the February 2016 hit 18.5 percent compared with the 19.0 percent recorded in January 2016.

The monthly change rate in February 2016 was 0.7 percent while that of January 2016 was 4.6 percent.

The Ghana Statistical Service cites non-food inflation (decrease in utility, transport and education) as accounting for the decline.

The year – on – year non – food inflation rate for February 2016 decreased to 24.5 percent compared to the 25.5% recorded in January 2016.

The consumer price index measures the change over time in the general price levels of goods and services that households require for the purpose of consumption.

The Deputy Government Statistician in charge of Operations at the Ghana Statistical Service, Anthony Amuzu, said the stable nature of the cedi contributed largely.

“The cedi stabilizing has played a major role in the drop of inflation as you can see that non-food inflation that is, housing, water, electricity, gas and other fuels which was at 41%, transport was at 30.4%, education was at 25.4% and recreation and culture had inflation of 25.3%. We hope to see this continues for sometime,” he stated.

The main “price drivers” for the food inflation rate were coffee, tea and cocoa (11.0%), Mineral water, soft drinks, fruits and vegetable juices (11.7%), Sugar, jam, honey, chocolate and confectionery (10.0%), and Vegetables (9.9%).

The Greater Accra region recorded the highest inflation rate of 22.0% while the Upper East Region recorded the lowest inflation rate of 13.8 percent.

–

By: Norvan Acquah– Hayford/citibusinessnews.com/Ghana