February inflation scaled into double digits following hikes in fuel prices, for the first time since May 2010.
Inflation for February hit 10 percent from the 8.8 percent recorded in January this year. The closest to February’s figure was in May 2010 when inflation stood at 10.7 percent.
The hike has been attributed to the recent fuel subsidy removal as well as hikes in the inflation rates of alcoholic beverages, tobacco and narcotics which stood at 15.8%. Housing, water and electricity also contributed significantly to the increase.
‘’The Monthly change rate for February 2013 was 2.6 percent; compared with a figure of 2.1 percent for January 2013; the year on year non-food inflation rate was 12.6 percent and that for January 2013 was 11.5 percent,” Acting Government Statistician, Dr Philomena Nyarko indicated.
The Executive Director of the Centre for Policy Analysis CEPA , Dr Joe Abbey earlier told citi Business News
, Ghana’s failure to maintain the single digit will not be due to the recent hikes in the prices of petroleum products, but rather due to the revision of the basket of goods and services used to calculate inflation.
The Head of Industrial and Economic Research at the Ghana Statistical Service, Magnus Ebo Duncan at the Consumer Price Index release told Citi Business News
, ‘petrol, diesel, gas and other petroleum products recorded year on year inflation of zero percent because the prices of fuel was adjusted upwards in December 2011, so over one year, if there has not been any price increase, the rate becomes zero, and coupled with the recent increase, inflation was affected’’
At the regional level, the year-on-year inflation rate ranged from 7.4 per cent in the Western Region to 12 per cent in the Northern Region.
Four regions, including Greater Accra, Northern, Ashanti and Brong-Ahafo recorded inflation rates above the national average of 10.0 per cent.
The 10 percent inflation as announced by the Ghana Statistical Service is the highest rate since June 2010.
By: Lorrencia Nkrumah/Citifmonline.com/Ghana