Ghana's annual consumer price inflation dropped to 16.7 percent in July from 18.4 percent in June as the cedi currency stabilised and food prices fell at the start of the harvest season,the Ghana Statistical Service has said.
Ghana has enjoyed general price stability this year as compared to last year, when water tariffs increased 15 percent and petroleum prices also increased significantly.
"The main reason why we are seeing a drop in July is as a result of base drift and seasonality effects, influenced by stability of the cedi and the beginning of good harvest," government statistician Philomena Nyarko said at a press briefing .
The monthly inflation rate for July also slid 0.4 percentage points to 0.9 percent, relative to the 1.3 percent recorded in June.
Mrs. Nyarko explained that the price stabilities in certain key areas were the main factors precipitating the lower inflation.
These include utility tariffs, which stayed down this year, compared with 2015 when they went up by 15 percent, and cooking gas and electricity which remained low, compared with the above 19 percent increase last year
Year-on-year non-food inflation for July was 21.2 percent, down from 24.1 percent in June, while food inflation was unchanged at 8.6 percent, she stated.
Food inflation rate for July remained at 8.6 percent, the same as that recorded in June, non-food inflation dropped to 21.2 percent from 24.1 percent recorded in the previous month.
Ghana is currently implementing a three-year aid programme with the International Monetary Fund to remedy fiscal problems including persistently above-target inflation.
Analysts have predicted a further decline in inflation in the months ahead due to a monetary tightening stance held by the Bank of Ghana, and supported by the harvest season.
by: Farida Mohammed/ghanaguardian.com