Year-on-year inflation rate in July rose to 7.9 percent in Ghana relative to the 7.1 percent recorded in June, the Ghana Statistical Service (GSS) announced here on Wednesday.

inflation
inflation

The month under review also recorded a change rate of 2.3 percent against 1.8 percent recorded in June
Ghana’s inflation basket has two main components of food and non-food, with the food component having 44.9 percent share in the basket, and the non-food 55.1 percent.

While food inflation rate for July 2015 was 7.6 percent, compared with 7.4 percent in June, non-food inflation for the same month was 24.6, compared with 23.6 percent in June.

The inflation rate for imported items remained flat at 21.2 percent in July, the same as in June, while that for locally produced items was 17.0 percent in July, compared with 15.5 percent recorded in June.

The main “price drivers” for the non-food inflation rate were housing, water, electricity, gas and other fuels (27.1 percent); transport (25.7 percent); recreation and culture (25.5 percent); clothing and Footwear (24.9 percent); and furnishings, household equipment and routine maintenance (24.9 percent).

On the other hand, the main price drivers for the food inflation were mineral water, soft drinks, fruit and vegetable juices (14.5 percent); coffee, tea and cocoa (14.3 percent); and food products n.e.c. (13.9 percent).
The rest are sugar, jam, honey, chocolate and confectionery (13.8 percent); meat and meat products (11.6 percent); milk, cheese and eggs (9.6 percent); and vegetables (9.3 percent).

It had been expected that, with the rising fortunes of the local currency and the lowering prices of petroleum products, July would start the era of receding inflation.

“Limited harvest due to lower rains have contributed to the rise in food inflation at this time and so while non-food inflation was rising, food inflation was also rising so there was a double inflationary factor in July,” Philomena Nyarko, Government Statistician, explained.

She added that the lower and unreliable rains during the year were responsible for the lower harvest the country was experiencing.

“While this rainfall pattern was good for fruits and vegetables, it was not conducive for the main staples such as maize, cassava, and yam,” she added.

According to her, the pass-through effect of a 15 percent transport fare increase in June and the base-drift effect in the month under review, compared with the same month last year, also contributed to the 0.8 percentage point rise in inflation. Enditem

Source: Xinhua

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