Govt misses inflation target for 2017

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Bank of Ghana

THE GOVERNMENT has failed to reach its target to reduce the inflation rate from 15.4% it inherited to 11.2% by the end of 2017, as the year ended with 11.8%.

The Consumer Price Index(CPI) which measures the change over time in the general price level of goods and services that households acquire for the purposes of consumption in December 2017 increased to 11.8% from the 11.7% recorded in the month of November 2017, representing 0.1 percentage point.

Briefing the press in Accra, Mr Baah Wadieh, Acting Government Statistician of the Ghana Statistical Service, said the monthly change rate in December 2016 was 1.0% compared to the 0.9% recorded in December 2017.

For the food and non-alcoholic beverages group, the Statistician pointed out that the year -on -year inflation rate recorded 8.0%, compared with 7.9% recorded in November 2017.

According to him, two sub-groups of the food and non-alcoholic beverages group recorded inflation rates higher than the group’s average rate of 8.0%.

The two, he mentioned, were vegetables, which recorded a year-on-year inflation rate of 10.0%, and fish and sea foods, which recorded a year-on-year inflation rate of 8.8%.

For the non-food group, Mr Wadieh said it recorded a year-on-year inflation rate of 13.6% in December 2017, same as the rate recorded for November 2017.

“In December 2017, the year-on-year inflation rate for imported items (13.6%) was 2.5 percentage points higher than that of locally produced items (11.1%),” he said.

The Statistician explained that four sub-groups recorded year-on-year inflation rates higher than the group’s average rate of 15.1%.

“The main price drivers for the non-food inflation rate were clothing and footwear (18.8%), transport (18.7), recreation and culture (17.5%) furnishings, household equipment and routine maintenance (15.2%),” he added.

Mr Wadieh pointed out that four regions, Upper West, Greater Accra, Brong Ahafo, and Ashanti recorded inflation rates higher than the national average of 11.8%.

“Upper East recorded the highest year-on-year inflation rate of 12.8%, followed by Greater Accra Region (12.7%), while Upper East Region recorded the lowest year-on-year inflation (10.2%) in December 2017,” he explained.