Inflation falls for the first time in months; current rate is 11.2 percent
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Inflation falls for the first time in months; current rate is 11.2 percent

- The rate of inflation has fallen for the first time since April 2020, available details have shown

- It fell by 0.1% in June following sharp increases as a result of an upsurge in buying

- The rise in the rate of buying was attributed to the panic that followed the outbreak of the coronavirus

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For the first time since April 2020, the rate of inflation has recorded a fall, YEN.com.gh has gathered.

In that month, there was an increased rate in buying following the outbreak of the coronavirus.

This led to a hike in the prices of goods and services as fears of a shortage of food and related items began to grow.

Inflation falls for the first time in months; current rate is 11.2 percent

Government Statistician, Professor Annim Source: graphic.com.gh
Source: UGC

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The rate of inflation stood at 11.2% as of June 2020, which implied a 0.1% increase compared to the previous month.

The fall, per a report by thebftonline.com, has been attributed to a decline in the food and beverage basket.

This, per details available, had been the main reason for the upsurge in the rate over the past few months.

Information available shows that the food and non-alcoholic beverages sector recorded 13.8% inflation in June compared to 15.1% in May.

The non-food sector recorded an increase in inflation to 9.2% from 8.4% in the same period.

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However, the non-foods rate didn’t lead to another increase in the overall inflation due to the weight of the food basket in calculating the consumer price index.

The closure of the borders also continues to impact the demand for locally produced items, as inflation of imported goods was 4.7% while that of local goods was 13.9% on average.

In other news, Ghanaian importers have expressed fears over the new taxes following a GHc3.59 million drop in government’s revenue for the first quarter of the year 2020.

This follows the belief that the government would resort to taxes to close the deficit gap.

YEN.com.gh understands that a target of GHc13.95 billion for the period was missed.

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Source: Yen

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