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10.10.2008 Business & Finance

Inflation continues to slide


The annual rate of inflation fell marginally in September at 17.89 per cent, the third consecutive drop since the beginning of the year.

Dr Grace Bediako, Government Statistician, attributed the fall to good harvest and falling prices of food items, mostly in the rural areas.

The level of inflation in non-food items was 18.53 per cent, and 17.00 per cent for food items.

The contribution of the non-food and food groups in September stood at 10.21 and 7.68 percentage points respectively.

In the non-food group the contributions of hotels, cafés and restaurants; clothing and footwear; and housing, utilities sub-groups were highest in price change.

Fish, bread and cereals sub-groups continue to contribute the largest to price change in the food group.

However, rural inflation (21.18%) was significantly higher than urban inflation (14.78 %).

Greater Accra and Ashanti regions continue to exhibit relatively lower inflation rates.

“Going by the trend these are generally periods that inflation goes down. The changes we are seeing are marginal now because of the global price rises,” Dr Bediako said.

“Barring any upward election spending and global price hikes, inflation can be contained and likely end the year around 18 per cent,” she added.