Ghana’s inflation reached its lowest in five years for the month of January. Inflation rate dropped to 9 per cent, from the 9.4 percent recorded in December 2018.
The rate of 9.0% is the lowest since January 2013. The drop was largely consistent with the inflation trend recorded in January for the last 5 years.
The announced inflation figure means that there was a 9 percentage increase in the general price level of goods and services that households consumed in January 2019, when compared to prices of goods and services in January last year.
While announcing the consumer inflation rate for the first month of 2019, the Acting Government Statistician, David Kombat, explained that items in the food and non-food groups contributed to the drop.
“The food inflation rate for January 2019 was 8 percent compared with 8.7 percent recorded in December 2018. The non-food inflation rate January 2019 was 9.5 percent, compared with 9.8 percent recorded in December 2018. Both the food and no-food inflation rate from the data fell to cause the fall in the combined rate of inflation.”
The food and non-alcoholic beverages group recorded a year-on-year inflation rate of 8 percent. This is 0.7 percentage point lower than the rate recorded in December 2018.
The “price drivers” for the food inflation rate were Coffee, tea and cocoa (12.4%), Fruits (10%), Meat and meat products (9.8%), Mineral water, soft drinks, fruit and vegetable juices (9.3%). All these recorded inflation rates higher than the group’s average rate of 8 percent.
The main “price drivers”* for the non-food inflation rate were Transport (13.4%), Clothing and footwear (12.8%), Recreation and Culture(12.7%), Furnishing, Household Equipment and Routine Maintenance (11.2%) and Miscellaneous goods and services (9.6%).
At the regional level four regions (Upper West, Brong Ahafo, Western and Ashanti) recorded inflation rates above the national average of 9.0 percent.
Upper West region recorded the highest year-on-year inflation rate of 10.8%, followed by Brong Ahafo region (9.9%), while the Upper East region recorded the lowest year-on-year inflation rate (7.7%) in January 2019.