September inflation drops to 10.2 percent

The annual rate of inflation dropped marginally by 0.2 percentage points from 10.4 percent in August to close at 10.2 percentage points in September. This was in contrast to the drop of 0.6 percentage points from 10.7 percentage in June to 10.1 percent in July 2007 and a drop of 0.3 percentage points from 11.0 percent in May to 10.7 percent in June 2007.

The annual year-on-year rate of inflation rose 0.5 percentage points in April from 10.5 percent to 11.0 percent in May 2007. From March to April 2007, the annual rate of inflation rose 0.3 percentage points from 10.2 percent in March to 10.5 percent in April 2007, having dropped marginally at the end of March by 0.2 percentage points from 10.4 percent at the end of February 2007.

Earlier, the rate had fallen from 10.9 to 10.4 percent between January and February 2007, while it remained at 10.9 percent in January 2007 when compared with the December 2006 figure of 10.9 percent.

A report from the Ghana Statistical Service indicate that the consumer price index was computed from a basket of 242 goods and services collected monthly from 40 markets throughout the country.

The index is disaggregated into 12 major commodity groups and 34 sub groups of the classification of individual consumption by purpose. The 12 major groups comprise the food and beverages group which makes up 44.91 percent, and non-food group which makes up 55.09 percent.

Within the food and beverage group, vegetables contributed the highest of -1.80 points to the change in the national index with yam, plantain and cassava contributing -0.67 points -0.48 points and -0.24 points respectively.

The fish group also contributed negatively to the national index by -0.38 points, with dried fish and smoked herrings contributing to 0.37 and -0.20 points respectively.

Within the non food group, hotels, cafes and restaurants group contributed the highest with 0.58 points followed by transport group with 0.38 points. The education and communication groups did not contribute anything to the change in the national index.

Five regions, Western, Volta, Ashanti, Brong Ahafo and Northern recorded single digit inflation, with Western region having the lowest of 7.8% between the months of September 2006 and September 2007. This means that prices of goods and services in these regions were relatively stable.

The Eastern region recorded the highest changes in the prices of goods and services, 13.5 percent, between the months of September 2006 and September 2007, followed by the two Upper regions with 13.1 percent.

The Statesman : Business : September inflation drops to 10.2 percent