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Inflation Drops To 9.4%

THE YEAR-on-year inflation rate as measured by the CPI was 9.4 percent in May 2019, down by 0.1 percentage point from the 9.5 percent recorded in April 2019.

The monthly change rate for May 2019 was 0.9 percent compared to the 1.1 percent recorded for April 2019.

Several factors contributed to the fall in the rate of inflation in May 2019 compared to April 2019. The major factors being favourable weather pattern, government policy on planting for food and jobs, exchange rate stability and others.

The food and non-alcoholic beverages group recorded a year-on-year inflation rate of 6.7 percent. This was 1.1 percentage point lower than the rate recorded in April 2019. Five sub-groups of the food and non-alcoholic beverages group recorded inflation rates higher than the group’s average rate of 6.7 per cent.

The fall in the inflation rate of this group was due to the fall in the inflation rate recorded for vegetables, fish and sea food and meat and meat products sub-groups.

The vegetables sub-group recorded the highest fall in the rate among the sub-groups of the food and non-alcoholic beverages group.

“Within the vegetables sub-group, lower inflation rates for May compared to April 2019 were recorded for yam (-2.8 percent), cassava (-2.4 percent), cocoyam (-1.4 percent), okro (-1.2 percent) and tomatoes (-1.1% percent),” the Ghana Statistical Service (GSS) stated.

The Non-food group recorded a year-on-year inflation rate of 10.6 percent in May 2019, compared to 10.4 percent recorded for April 2019. Four sub-groups recorded year-on-year inflation rates higher than the group’s average rate of 10.6 percent.

Clothing and footwear, recreation and culture recorded the highest inflation rate of 15.0 percent followed byfurnishings, household equipment and routinemaintenance with 14.5 percent, and transport with 12.5 percent. Inflation was lowest in the communications sub sector with (6.1 percent).

For the furnishings, household equipment and routine maintenance sub-group, it recorded the highest rise by 1.7 percentage points from 12.8 percent in April to 14.5 percent in May 2019; while the health sub-group recorded a rise of 1.2 percentage points. The alcoholic beverages, tobacco and narcotics and recreation and culture sub-groups recorded a rise of 0.9 percentage points each.

At the regional level, the Upper West Region recorded the highest combined inflation rate (11.1 percent). These were recorded for the transport (21.2 percent); furnishings, household equipment and routine maintenance (13.2 percent); miscellaneous goods and services (12.6 percent) and clothing and footwear (12.3 percent) sub-sectors.

Again, the Upper West Region recorded the highest regional non-food inflation rate (13.8 percent) due to a rise in inflation for the transport sub-group (21.2 percent).

The Ashanti Region recorded the highest food inflation rate of 7.3 percent in May 2019 while the coffee, tea and cocoa sub-group recorded the highest inflation rate of 17.4 percent.