Inflation hits 40.4% in October

BY: Emmanuel Bruce

Inflation, the rate at which the prices of goods and services change in a given time, ballooned from 37.2 per cent in September to 40.4 per cent in October.

This is the 17th consecutive time the rate had increased, a development which is expected to impact the already high lending rates, among other economic indicators.

Last month’s inflation was driven by the housing, water, electricity, gas and other fuels division which recorded an inflation rate of 69.6 per cent.

This was followed by furnishings, household equipment and routine household maintenance (55.7 per cent); transport (46.3 per cent); personal care, social protection and miscellaneous goods and services (45.5 per cent).

The education division recorded the lowest inflation rate of 9.5 per cent for the month.

Food inflation

The Government Statistician, Professor Samuel Kobina Annim, who announced this at a news conference in Accra yesterday said: “Food inflation increased from 37.8 per cent to 43.7 per cent in the month under review, while non-food inflation also rose to 37.9 per cent.”

“Inflation for locally produced items was 39.1 per cent, while that for imported items increased to 43.7 per cent.”

The food inflation of 43.7 per cent was largely driven by water which recorded an inflation rate of 64.3 per cent.

This was followed by milk, dairy products and eggs (58.9 per cent), sugar and desserts (54.6 per cent), fruit and vegetable juices (54.1 per cent); fruits and nuts (52.4 per cent); fish and other seafood (51.5 per cent) cereal and cereal products (51.3 per cent), and tea and other plant products (46.1 per cent).

The rest are live animals and meat (40.3 per cent); oils and fats (39.4 per cent), and soft drinks (36.6 per cent).

Regional inflation

The Eastern Region (51.1 per cent) maintained its lead as the region with the highest inflation.

This was followed by Greater Accra (49.1 per cent); Savannah (47.6 per cent); Central (46.4 per cent), Western North (43.1 per cent), and Oti Region (35.2 per cent).

The rest are Upper East (33.6 per cent); Western Region (33.5 per cent); North East Region (33.1 per cent); and Ahafo Region (31.7 per cent).

The Bono East, and Ashanti regions both recorded inflation rates of 29.6 per cent.

Those with the lowest inflation rates are Northern Region (27.3 per cent); Upper West (27 per cent); and Volta Region (25.8 per cent).

Know this

The Consumer Price Inflation measures changes in the price of a fixed basket of goods and services purchased by households.

The assumption is that the basket is purchased each month, hence as price changes each month, the total price of the basket will also change.