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15.12.2011 Business & Finance

Inflation Up In Greater Accra, Ashanti

By Daily Guide
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Inflation shot up in the Central, Ashanti, Greater Accra and Western regions despite an insignificant drop in the national rate.

This means prices of items were up in these regions.

While the Central and Ashanti regions recorded inflation of 10.54 and 9.74 percent, the Greater Accra region, the biggest in terms of population and the Western region recorded 8.98 and 8.76 percent respectively.

Year-on-year inflation dropped by 0.01 percentage points in November 2011 to record an inflation rate of 8.55 percent as against 8.56 percent recorded in October 2011, indicating that government's end of year inflation target of 9.0 percent in December 2011 could be attained.

Single digit inflation has been recorded in the country for some time now, but average lending rate is about 26.5 percent.

Despite an increase in inflation in the months of November and December over the years, inflation dropped in the month of November, this year.

Though the Ghana Cedi has lost some value in the last six weeks against the U.S dollar, the depreciation of the cedi has not impacted on the price levels, especially non-food items.

Dr. Grace Bediako, Government Statistician, said the end of year inflation target of 9.0 percent will depend on consumer spending during the yuletide period.

According to figures released by the Ghana Statistical Service (GSS) yesterday, food inflation inched up from 4.03 percent in October 2011 to 4.4 percent in November 2011 while non-food inflation dropped to 11.08 percent in November 2011 from 11.32 percent in October 2011.

The non-food group contributed to the marginal decline in the general price levels.

In the food and non-alcoholic beverages group, which has a weight of 44.91 percent, coffee, tea and cocoa; sugar, jam, honey, syrups, chocolate and confectionary; meat and bread and cereals, recorded about two or more times the group's average inflation.

Vegetables, including potatoes, tubers, fruit and other food products; milk, cheese and eggs and mineral waters, soft drinks and juices, recorded the least inflation rates below the average food inflation rate.

In the non-food group category, six sub-groups recorded inflation rates above the group's average of 11.08 percent.

They include transport (22.28 percent), miscellaneous goods and services (18.80), clothing and footwear (13.47), furnishings, household equipment (13.02 percent), alcoholic beverages, tobacco and narcotics (11.89). Recreation and culture (11.50 percent) recorded inflation above the group's average.

However, prices of products in the communications and education sub-groups as well as hotels, cafes and restaurants recorded the lowest and most stable inflation rates during the month.

Upper East and West recorded the least inflation rate of 5.43 percent followed by Volta region (6.44 percent) and Northern region (6.63 percent).

By Charles Nixon Yeboah
 

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