Inflation rate for February declines marginally

Inflation rate for February declines marginally

- Inflation for the month of February was 18.5%, a slight decline from the January rate

- The Ghana Statistical Service attributes the February inflation rate to utility tariff increase and high transport fares

The Ghana Statistical Service's Consumer Price Index (CPI) report for February, 2016, indicates that inflation for the month has declined marginally.

In the month of February inflation was 18.5% compared to January’s 19%.

According to the GSS, the utility tariff hikes and its correspondent high transport fares influenced the inflation rate.

The monthly change rate in February 2016 was  0.7%, while that for January 2016 was 4.6%.

The year-on-year non-food inflation rate for February 2016 was 24.5% compared with the 25.5% recorded in January 2016.

The year-on-year food inflation rate  for February  2016  was 8.3%, compared with the 8.2%  recorded for January 2016.

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The year-on-year non-food inflation rate (24.5%) was about three times higher than the food  inflation rate (8.3%).

The year-on-year inflation rate for locally  produced  items (18.6%) for February 2016 was 0.3 percentage point higher than that of imported items (18.3%.)

The main “price drivers” for the non-food inflation rate were Housing, Water, Electricity, Gas and Other Fuels (41%), Transport (30%), Education (25.4%) and Recreation and Culture (25.3%).

The “price drivers” for the food inflation rate were Mineral Water, Soft Drinks, Fruit and Vegetable Juices (11%), Sugar, Jam, Honey, Chocolate and Confectionery (10%), Vegetables (9.9%), Food products n.e.c (9.6%) and Oils and Fats (8.5%).

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Three regions (Brong Ahafo, Ashanti and Greater Accra) recorded inflation rates higher than the national average of 18.5%.

The Greater Accra Region recorded the highest year-on-year inflation rate of 22% while the Upper East Region recorded the lowest (13.8%).

Source: GSS

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