TIG Post

Tag: inflation

  • Train drivers from 12 different companies will strike again later this month

    The announcement of another train driver strike comes on the same day that London Underground workers go on strike, rendering large sections of the Tube network inoperable.

    Train drivers in England have declared a new strike in their long-running pay and conditions dispute.

    After months of walkouts by various groups, members of the Aslef union will strike on Saturday, November 26th, causing even more disruption for passengers.

    The 12 companies involved are Avanti West Coast; Chiltern Railways; CrossCountry; East Midlands Railway; Great Western Railway; Greater Anglia; London North Eastern Railway; London Overground; Northern Trains; Southeastern; Transpennine Express, and West Midlands Trains.

    The rail network has been crippled by strikes as workers fight for inflation-busting pay rises amid the cost of living crisis.

    Strikes on 5, 7 and 9 November were called off, but at too short notice to reinstate services, leaving Bonfire Night travellers stuck.

    Today, members of Unite and the Rail, Maritime and Transport (RMT) union have walked out over jobs and pensions.

    It means no services on large parts of the London Underground.

    Only the Central, Northern, District, Elizabeth, Overground and DLR lines are running, but with reduced services.

    Train companies with big profits should make ‘proper pay offer’

    Aslef general secretary Mick Whelan said of the latest industrial action: “We don’t want to be taking this action.

    “We have come to the table, as we always will, in good faith but while the industry continues to make no offer – due to the dodgy deal they signed with the Department for Transport – we have no choice but to take strike action again.

    “They want drivers to take a real terms pay cut.

    “With inflation now well into double figures, train drivers who kept Britain moving through the pandemic are now being expected to work just as hard this year as last year but for less. Most of these drivers have not had an increase in salary since 2019.

    “We want the companies – which are making huge profits – to make a proper pay offer so that our members can keep up with the cost of living.”

  • Food, fuel prices shoot October inflation to 40.4%

    Ghana Statistical Service (GSS) has revealed that the country’s inflation, as of October 2022, stood at 40.4 %.

    The staggering rate which grew from 37.2% in September has once again been attributed to the increase in food prices, housing, electricity and fuel.

    Food inflation recorded the highest rate among all the components as against non food inflation according to the GSS.

    Increase in food prices, others push October inflation to 40.4 %

    The increase by food inflation indicates a jump of more than 3 percent from the previous rate of 37.2.

    Addressing the media, Government Statistician,  Professor Samuel Kobina Annim explained that all items in the component for calculating the rate of inflation recorded an increase.

    Increase in food prices, others push October inflation to 40.4 %

    “For the month of October, Food inflation was 43.7%. Last month’s Food inflation was 37.8%. A careful study of the figures show that month-on-month Food inflation was 3.2%.” he said.

    He explained that non-food Inflation for October was at 37.8% compared to the previous month’s non-food inflation of 36.8% .

    Increase in food prices, others push October inflation to 40.4 %

    By this, Professor Annim announced that the month-on-month non-food inflation recorded 2.3%.

    Increase in food prices, others push October inflation to 40.4 %

     

  • Inflation in eurozone has reached a new high of 10.7 percent

    Consumer price growth in the eurozone’s 19 member countries accelerated in October, putting the ECB under pressure.

    Government bond yields in the Eurozone have risen after data showed consumer prices rose at a record pace in October, putting pressure on the European Central Bank to maintain aggressive policy tightening.

    Consumer price growth in the 19 countries that use the euro as their monetary unit accelerated to 10.7 percent in October, up from 9.9 percent the previous month, according to data released on Monday.

    Inflation excluding unprocessed food and energy accelerated to 6.4 percent from 6 percent, while an even narrower measure that also filters out alcohol and tobacco rose to 5 percent from 4.8 percent.

    The data points to further rate increases from the European Central Bank (ECB) in an attempt to bring inflation back down toward its target.

    “The ECB’s goal of pushing the inflation rate back to just under 2 percent on a sustainable basis seems a long way off,” Commerzbank senior economist Christoph Weil said, noting the ECB forecast inflation at 9.2 percent in the final quarter of 2022.

    “This also increases the pressure on the ECB Governing Council to further raise key rates sharply,” Weil added.

    Germany’s 10-year yield

    By 10:27 GMT, Germany’s 10-year yield, the benchmark for the euro area, was up 6 basis points (bps) to 2.147 percent.

    Germany’s two-year yield was up 4 bps to 1.968 percent.

    The ECB policy meeting on Thursday had pushed investors to bet on a slower pace of rate hikes, but policymaker comments since the meeting and elevated price pressures suggest the central bank remains in tightening mode.

    Money markets are pricing in a 50 bps rate hike at the December meeting, with about 140 bps of further tightening priced in for this cycle, according to data from Refinitiv.

    On Sunday, ECB governing council member Klaas Knot helped push back expectations for a slower pace of tightening, saying it was likely the next hike would be a choice of 50 or 75 bps.

    Italy’s 10-year government bond yield rose 9 bps to 4.243 percent, pushing the spread between Italian and German 10-year yields wider by 3.5 bps to about 209 bps.

    Black Sea grain deal

    Eyes were also on the inflationary effect of Russia suspending participation in an UN-brokered Black Sea grain deal.

    Chicago wheat futures jumped almost 6 percent on Monday and corn rose more than 2 percent as Russia’s withdrawal from the agreement raised concerns over global supplies.

    “Food inflation has been a big deal and any decline in grain shipments from Ukraine is not going to help the inflation issue,” said Lyn Graham-Taylor, senior rates strategist at Rabobank.

    “It’s another wrinkle to add to the many inflationary issues out there.”

    Looking further ahead, investor focus looks set to turn to the Federal Reserve policy meeting on Wednesday.

    The Fed is likely to raise rates by 75 bps at the meeting but is seen slowing the pace of hikes from December.

    “We’re of the view that no one is going to be pivoting yet. Any confirmation around that view will be pretty significant,” Rabobank’s Graham-Taylor added.

     

  • How does current inflation compare with previous years?

    As we’ve been reporting, inflation has risen to 10.1%. We’re all experiencing this already – in the higher prices we’re paying for basic goods, from buying loaves of bread to boiling the kettle.

    Inflation is also looked at when employers consider pay rises, and when the government considers increasing state pensions and benefits.

    Here’s a look at how that figure compares with previous years.

    Source: BBC

  • Inflation figures will cause concern – foreign secretary

    Foreign Secretary James Cleverly has acknowledged that the inflation figures are “concerning” for people across the country.

    He says the figure of 10.1% is in the range the government was expecting, adding that the government’s energy price support will have helped to lower inflation overall.

    Under the energy price guarantee – made in response to soaring energy prices – a typical annual household bill will be limited to £2,500 until April.

    “I think the response to the energy price increases that we brought out in the statement a few weeks ago will have helped to suppress some of that inflation, but of course it is still something which is concerning,” Cleverly tells the BBC.

    He adds that global factors – such as the war in Ukraine – have played a part in the rise in inflation.

    “We want to make sure that we take action to try and limit the rate of inflation.

    “That’s why it’s so very important that we protect people in businesses from those energy price rises, but we also try and address some of the core drivers of inflation, including the war in Ukraine, which has pushed up energy prices, and that’s had a knock-on effect for the prices in so many people’s baskets.”

    Source: BBC

  • Price hikes caused by local factors – IMF

    The International Monetary Fund (IMF) has asserted that the incessant increase in prices of commodities is mainly due to domestic factors in the country.

    According to the Director of the IMF’s African Department, Abebe Aemro Selassie, it would be misleading to pin the whole blame on external factors such as the Russia-Ukraine invasion.

    At a press conference on the sideline of the IMF/World Bank Spring Meetings from 10-16 October 2022 in Washington, D.C., US, he explained that “on inflation, I mean, again, there are always trade-offs when you’re doing policy calibration, and so in our regional economic outlook, we are very careful to flag that there are some countries where inflation has clearly been driven more by domestic factors than exogenous factors. I think Ghana would fall in that camp.”

    His comment, however, suggests that both domestic and external factors have a role to play in the country’s extremely high inflation rate.

    Since January this year, inflation has been on the rise. From 13.9%, Ghana’s inflation rate now stands at 37.2% as of September 2022, according to the Ghana Statistical Service (GSS).

    As inflation rose this year, the price of petroleum products also saw an increase. During the period when fuel prices were hiked, transport fares were adjusted twice.

    Consequently, the cost of goods and services has also surged.

    The Bank of Ghana has adjusted the Monetary Policy Rate (MPR) to check rising inflation. Increasing the rate from 17%, then to 19% and 22% seems to have not aided the reduction of the inflation rate.

    Despite failed efforts, the central bank has recently increased the policy rate to 24.5% in a bid to control the high inflation rate.

    The Bank of Ghana is optimistic that its many measures will address the worrying rate.

    As the adjustment in policy rate has failed to check inflation, some experts have asserted that imported inflation could be driving Ghana’s inflation.

    Such views have not been discarded, as Ghana remains a heavily imported dependent country.

    Mr Abebe Selassie also hinted at such an assertion, however, did not categorically state that Ghana falls under such a category.

    “But there are also quite a lot of other countries where the inflation we are seeing is more imported inflation, so the scope and the space and the ability of monetary policy to address that is limited. So again, it depends on country-specific circumstances, and on time”.

    Mr. Abebe also said a volatile exchange rate affects a country’s inflation rate. Currently, a dollar is trading at over GH¢12 at the forex bureaus.

    Source: The Independent Ghana

  • Eastern region tops inflation rate in Ghana with 47.1%

    The Eastern region has maintained its lead as the region with the highest inflation rate among the 16 regions in the country with a percentage of 47.1.

    This was revealed by the Ghana Statistical Service (GSS) in the inflation (year-on-year) of the month of September 2022.

    According to GSS, Ghana’s inflation shot up by 3.3% to 37.2% in the month under review.

    Meanwhile, the country’s inflation rate was 33.9% in August 2022.

    At the regional breakdown, Eastern region’s 47.1% rate put it in the lead as the region with the highest inflation. It is followed by the Greater Accra region and the Central region respectively with 45.3% and 41.9%.

    Savannah Region, Western North region, Bono region, and the Oti region follow in that order with 36.7%, 35.9%, 35.2% and 33.9% respectively.

    The Western, Ashanti, Ahafo, North East, and the Bono East region in that order also its inflation of 31.8%, 31.1%, 31.0%, 30.3%, 28.5%. They are followed by the Upper East, Volta, and the Northern region with 27.7%, 24.0% and 23.9% respectively.

    The chart saw the Upper West Region recording the least rate of inflation at 22.9%.

     

  • The Japanese yen has reached a 32-year low against the US dollar

    The Japanese yen fell to a 32-year low versus the US dollar as official data revealed that prices in America rose faster than predicted.

    The yen sank to 147.66 per dollar before recovering some ground.

    Japanese Finance Minister Shunichi Suzuki said the government will take “appropriate action” against the currency’s volatility.

    In a rare move last month, Japan spent almost $20bn (£17.6bn) to prop up the country’s struggling currency.

    “We cannot tolerate excessive volatility in the currency market driven by speculative moves. We’re watching currency moves with a strong sense of urgency,” Mr Suzuki told reporters after attending a G7 finance meeting in Washington, DC.

    Last month, Japan intervened in the global currency market to help support the weakening yen.

    That move came after the yen hit a fresh 24-year low against the dollar, marking the first time that Japanese authorities had intervened in the currency market since 1998.

    However, analysts have warned that interventions like this would have little effect as long as Japan’s interest rates remain far lower than those in the US.

    The Japanese currency has come under increasing pressure in recent months, mainly due to the very different approach taken by the Bank of Japan (BOJ) in comparison with the US Federal Reserve.

    On Thursday, official figures showed that consumer prices in the US rose more than expected last month in a sign that the inflation fight in the world’s largest economy is far from over.

    Inflation, the rate at which prices rise, was 8.2% in the 12 months to September, down from 8.3% in August.

    Rising consumer prices in the US are being closely watched as the Federal Reserve’s efforts to cool inflation pushes up the value of the dollar as well as global borrowing costs.

    America’s central bank has been aggressively raising its interest rates to combat soaring prices, which has made the dollar more attractive to investors. In contrast, the BOJ kept rates very low.

    The dollar’s strength in the global financial markets is also having an impact on other major currencies around the world, including the pound and the euro.

     

  • Ghana ranks 1st with highest food price increases of 122% in Sub-Saharan Africa – World Bank

    Ghana is ranked 1st by the World Bank with the highest food prices in Sub-Saharan Africa in 2022.

    According to the Bretton Wood institution’s October 2022 Africa Pulse Report, food prices have since January 1, 2022, gone up by 122 per cent.

    Since the start of 2022, food prices have increased sharply in many countries, largely due to the Russian/Ukraine war.

    According to the Food Price Index in Countries in Sub-Saharan Africa, Ghana has recorded very sharp prices in food on the African continent.

    Food inflation in Ghana has been high, recording a year-on-year inflation of 34.4 per cent in August 2022, the Ghana Statistical Service disclosed.

    On month-on-month basis, inflation was even higher.

    The drivers of food inflation in Ghana are oils and fats (67 per cent); fish and other seafood (42.9 per cent); water (42 per cent); cereal products (40 per cent); milk, dairy products and eggs (39.7 per cent), fruits and vegetable juices (37.7 per cent) and live animals and meat (34.5 per cent). All of the items recorded inflation rates higher than the national average of 33.9 per cent.

    Overall, the World Bank said inflation breached the ceiling of the central bank target bands for all countries with an explicit nominal anchor.

    In Nigeria, headline inflation started the year above the central bank limit of 9.0 per cent and accelerated to 20.5 per cent in August 2022 – the highest since September 2005. Food and fuel prices were the key factors behind the rally in inflation.

    Meanwhile, Senegal followed Ghana closely with food price increases of 110 per cent

    Uganda is 2nd with 107 per cent increase in food prices.

  • Turkey: Inflation surges to 83%

    Turkey’s inflation rate has risen above 83%, reaching a 24-year high.

    The three industries with the most price increases are transportation, food, and housing.

    Independent experts the Inflation Research Group estimate the annual rate is actually 186.27%.

    Last year Turkish President Recep Tayyip Erdogan took the unorthodox step of cutting interest rates to try to boost the economy. Most central banks raise interest rates to fight inflation.

    The transport sector saw the sharpest increases in annual prices at 117.66%, followed by food and non-alcoholic drinks at 93%.

    Mr Erdogan has described interest rates as “the mother and father of all evil”, and his economic policies include intervening in foreign exchange markets.

    Last year’s cut in interest rates from 19% to 14% has led to a fall in the value of the Turkish lira, which means it costs more for the country to import goods from abroad.

    The lira, meanwhile, hit a new record low of 18.56 against the US dollar.

    US Banking giants JP Morgan said Turkey’s inflation would remain in the “abnormally high range until policies get orthodox”.

    “We will build the century of Turkey together, hopefully by overcoming the inflation issue,” said Mr Erdogan in a televised address on Monday.

    The record high is the sharpest inflation surge since World War Two, according to former Turkish central bank chief economist Hakan Kara.

    High inflation and the economic crisis is the main problem facing Mr Erdogan’s ruling party, as he looks to secure another term in next year’s election.

    Prices are rising quickly around the world, due to factors including Covid-related supply shortages and the Ukraine war, which has driven energy and food prices higher.

  • German inflation in September reaches a record 10%

    In September, the inflation rate in Germany reached a new high of 10%. The announcement follows economic forecasts that the GDP will contract in 2019.

    High energy and food prices pushed inflation in Germany to 10% in September. In August, the figure was 7.9%.

    Rising energy costs, which have skyrocketed since Russia’s invasion of Ukraine, were fueling inflation.

    According to the federal statistical office, Destatis, energy prices were 43.9% higher in September 2022 this year than in the same month last year.

    Destatis said the end of a fuel subsidy and the €9 public transport ticket “presumably had an impact on the inflation rate in September.”

    German Chancellor Olaf Scholz announced on Thursday plans for an energy relief package worth €150-200 billion ($145-194 billion).

    “The German government will do everything so that prices sink,” Scholz said in a press conference.

    Germany expected to enter a recession

    The inflation announcement follows a forecast by a leading group of think tanks earlier on Thursday that painted a bleak picture for Germany’s future economic prospects.

    According to the think tanks’ projections, the crisis in the gas markets, spiraling energy prices, and a massive drop in purchasing power would push the German economy into recession.

    The high cost of energy was the leading factor “driving Germany toward recession,” said Torsten Schmidt, head of economic research at the RWI think tank.

    Schmidt told a media briefing that Europe’s largest economy would shrink over the second half of 2022.

    Incomplete recovery from the global pandemic was among the factors contributing to Germany’s economic future.

    Munich’s ifo Institute said in a statement earlier on Thursday that inflation would likely average at 8.8% in the coming year.

    Inflation is expected to settle down in 2024 — “to be only slightly above the ECB’s target rate of 2%.”

    German GDP is also expected to shrink by 0.4% in 2023, down from April’s estimate of 3.1% growth, before rebounding back to a state of growth in 2024.

    The forecasts came Thursday as part of the so-called Joint Economic Forecast, which is prepared twice a year by the Ifo Institute in Munich, the Kiel Institute for the World Economy, the Halle Institute for Economic Research (IWH), and the RWI — Leibniz Institute for Economic Research.

    Germany is not alone in the economic challenges it is facing. According to the joint statement, the global economy is in a downturn, with Russia’s war against Ukraine and subsequent Western sanctions against Moscow fueling the level of inflation for energy commodities.

    The high levels of inflation have prompted the US Federal Reserve, along with many other central banks, to tighten monetary policy.

    The joint report also pointed to China’s zero-COVID strategy, which prohibits economic activity during periods of lockdown, and a bubbling real estate crisis as having impacts on the economy.

     

     

  • It will be suicidal for government to increase workers salary by 20% – Gammey

    Labour Analyst, Austin Gammey says the Akufo-Addo administration will suffer should it accept to increase the salary of public sector workers by 20 percent.

    Workers in the public sector want a 20 percent salary increment in replacement of the 15 percent Cost of Living Allowance agreed by the government which will end in December 2022.

    According to the workers, the skyrocketing level of inflation in the country is a huge blow to them hence their current demand.

    However, speaking on Morning Starr with Naa Dedei Tettey, Mr. Gammey stated that there is a possibility that the government will resist the demand from the workers.

    “The obvious thing for anybody to do is to pay based on productivity but in Ghana, we don’t pay based on productivity. So once we are paying people based on inflation and political consideration this is what they will demand,” the analyst stated.

    He said paying workers based on inflation has some dire consequences on the government’s purse due to the huge numbers of public sector workers.

    “I don’t think that if you speak directly to the IMF for this to be part of the approval of our budget for the year 2023, they will never accept that if the government itself as an employer cannot afford to accept that. Because you want 20 percent and if inflation is about 32 percent and we have to suffer a 12 percent shortfall in our income then they are bearing with you. This is not based on productivity,” Mr. Gammey explained.

    The Labour analyst further said if there is a disagreement on the demand by the workers then both sides will end up at the National Labour Commission for the issue to be addressed.

    “Because the government as an employer cannot afford to pay 20 percent increase on the base pay, it will be suicidal and so they will not be able to do it and they can’t do it. It will be extremely sad and surprising if they are able to do it because the consequences are very obvious,” he added.

     

  • Private pension fund assets rise to GHS31.4bn in first half of 2022 – BoG

    A report by the Bank of Ghana has revealed that Ghana’s pension industry has not been negatively impacted by the economic challenges facing the country.

    The latest Financial Stability Review by the central bank shows that private pension fund assets rose from GH¢28 billion in 2021 during the fourth quarter to
    GH¢31.4 billion by the end of June 2022. Pension funds’ assets are assets bought with contributions to a pension plan for the exclusive purpose of financing pension plan benefits.

    The report attributed the success to the “increased contribution mobilization through effective prosecution of defaulters and favourable investment
    outcomes.” However, the Bank of Ghana says “preserving the value of private pension funds and achieving a positive real rate of return on the investment of contributors’ funds, given the upsurge in the inflation rate, is becoming increasingly difficult.”

    The country’s inflation has been on a consistent rise since May (27.6%). In June, the inflation rate stood at 29.8%, increasing by 1.9% to 31.7% in July. It has so far risen to 33.9% as of August. Still on the downside of matters, assets available for benefits of the SSNIT-managed Basic National Social Security Scheme (BNSSS)
    dropped marginally by 2.3% to GH¢11.28 billion in March 2022.

    In the fourth quarter of 2021, the assets available for benefits were worth GH¢11.54 billion. “The benefits paid under the BNSSS continued to outstrip
    contributions received. The scheme also continued to post a negative real rate of return, recording -12.6 per cent at the end of the first quarter of 2022,”
    the central bank also noted in its report.

    The central bank, headed by Dr Ernest Addison, is optimistic about an improvement, which is dependent on public indebtedness being redeemed. Also, “it is expected that macroeconomic conditions will improve in the 2nd half of the year to enable the private pensions industry to achieve a positive real rate of return on investments of pension assets.”

    Meanwhile, the Social Security and National Insurance Trust (SSNIT) as intensified its outreach to the informal sector to improve pension coverage.
    Outlook of pension funds in 2021 Total pension funds of the Three-Tier Pensions Scheme, which is fully-funded and privately managed, increased to GH¢39.6
    billion at the end of December 2021.

    There has been an increase of 18% in pension funds (savings accumulated during the working life of an employee) as 2020s figure stood at GH¢33.5 billion. However, last year’s percentage increase was less compared to the growth witnessed from 2019 to 2020; 27 percent. According to the central bank’s
    report based on figures provided by the National Pensions Regulatory Authority (NPRA), the decreased growth rate can be attributed to “the ongoing lump sum payments under the private pension schemes and the marginal growth of the Basic National Social Security Scheme (BNSSS).”

    The Social Security and National Insurance Trust, a statutory public trust, is charged under the National Pensions Act, 2008 Act 766 with the administration
    of Ghana’s Basic National Social Security Scheme. SSNIT’s mandate is to cater for the First Tier of the Three-Tier Pension Scheme.

    Private pension funds, on the other hand, continued on a positive growth track in 2021, as it recorded GH¢28.02 billion from the GHc22.02 billion computed in 2020. “The sustained growth in private pension funds could be linked to better returns on investments and also the prosecution of defaulting Tier 2 employers, which increased contribution inflows,” the central bank explained.

    Tier 2 is a mandatory, fully- funded and privately managed occupational scheme. As part of its mandate, the
    NPRA prosecuted all employers who defaulted on their Tier 2 contributions in 2021. A total of 10 employers who defaulted in paying their Tier 2 contributions
    were prosecuted. In carrying out its mandate, the authority retrieved a total amount of GH¢7.8 million, the central bank added.

  • Nigeria lending rate hikes amid high inflation

    The Central Bank of Nigeria has raised interest rates for local bank lending to 15.5%, just two months after it was pegged at 14%.

    This is highest level yet. It comes as Nigeria’s inflation continues to spike – exceeding the 20% mark as at August.

    The bank’s governor Godwin Emefiele said the monetary policy committee voted unanimously to raise the rate after deliberating on the impact of the widening margin between policy rate and the inflation rate.

    “The committee thus agreed unanimously to raise the policy rate to narrow the interest rate gap and rein in inflation,” Mr Emefiele said in a statement.

    Nigeria’s economy continues to struggle amid dwindling reserves and poor foreign exchange earnings.

    Local banks are also slow in lending to businesses, insisting on stringent processes including the provision of adequate collateral.

    Business owners say borrowing at high interest rates puts their businesses at risk.

    Source: BBC

  • Govt, BoG must address rising inflation – IEA

    The government and the Bank of Ghana (BoG) must collaborate to address the factors causing inflation to rise, the Institute of Economic Affairs (IEA), has said.

    According to the economic think tank, the current inflation rate of 33.9 per cent in August 2022 was largely driven by supply and cost factors, particularly food, fuel, transport, and exchange rate.

    In a statement issued by the IEA in Accra on Monday and copied to the Ghanaian Times, it said the “supply and cost factors fueling inflation should be directly targeted with appropriate policy interventions.”

    Inflation for diesel in August stood at 116.9 per cent, petrol was 80.5 per cent, and transport inflation (embedding fuel costs) stood at 45.7 per cent, imported and food 34.4 per cent.

    IEA called for subsidies on basic staples and reinforcement of measures to ensure that food stocks were easily transported from farm gates to markets.

    “Also reduction of fuel taxes or levies and the use of part of Government’s windfall gains from higher oil prices to cushion pump-prices, while expanding public transport and subsidising fares to cushion the masses,” it said.

    Further, IEA urged the BoG to enforce the foreign exchange laws, including relating to forex carry-on limits for travellers, forex trading, pricing of goods and services in forex and forex transfers through banks.

    “We call on the BoG and the government to work to adopt additional targeted measures to fight the inflation crisis and also negotiate with foreign companies to stagger repatriation of their dividends and profits to reduce pressure on the exchange rate” it stated.

    IEA said in countries, including major economies where inflation, tended to be mostly demand-driven, a more appropriate tool such as Inflation Targeting had resorted to interventions directed to the supply factors.

    The economic think tank said some advanced countries had taken unorthodox and innovative measures to cushion its citizens and was time for the country’s policymakers to be equally proactive.

    “The United States has passed the Inflation Reduction Act, where the new UK Prime Minister has imposed caps on energy prices for two years, also France has capped fuel prices and limited electricity tariff increases to 4 per cent” IEA said.

    Adding that, while the focus may now be on the immediate crisis, it would take far-reaching, comprehensive measures to address the underlying vulnerabilities and policy lapses in order to achieve durable price stability in the country.

    Source: The Ghanaian Times

  • UK already in recession, Bank of England reveals

    The Bank of England hikes interest rates as it indicates the UK is already in recession; government hints energy support for schools, hospitals, and care homes could continue beyond six months; submit your cost of living dilemma to personal finance expert Gemma Godfrey using the form below.
    What is a recession?

    It is a significant decline in economic activity, lasting months or even years.

    Generally during a recession, companies make fewer sales, people lose work, the economy struggles and the country’s overall economic output falls.

    Economists usually define a recession as two consecutive quarters where GDP has fallen.

    Why do recessions happen?

    There are a number of common causes for recession, including:

    • A sudden economic shock – such as the COVID pandemic or the war in Ukraine
    • Excessive debt
    • Asset bubbles – when investors become too optimistic and inflate the stock market or real estate bubbles, before the bubble bursts and panic selling ensues
    • Too much inflation
    • Too much deflation
    • Technological changes

    When was the last recession in the UK?

    The most recent recession was during the pandemic when the UK saw negative growth in Q1 and Q2 of 2020.

    Many people will also remember the Great Recession of 2008 and 2009 – the UK’s worst in modern history.

    This was largely due to the mortgage crisis in the US impacting the British banking sector, and the subsequent “credit crunch”.

    The UK also saw a recession between 1990 and 1991, caused by rapid economic expansion under Margaret Thatcher and Britain’s plans to maintain membership of the Exchange Rate Mechanism.

    How will a recession affect you?

    Unemployment levels will rise, so more people will be at risk of losing their jobs.

    People who keep their jobs may see cuts to pay and benefits, or struggle to negotiate future pay rises.

    Meanwhile, investments can lose money and savings can be reduced, upsetting some people’s plans for retirement or for large expenses such as buying homes or getting married.

    Businesses make fewer sales during a recession, and mortgage lenders can also tighten standards for mortgages, car loans and other types of financing – meaning you may need a better credit score or larger down payment.

    Source: Sky News

  • Argentina’s interest rate hits 69.9% as prices soar

    To contain rising inflation, Argentina’s central bank has reviewed its main interest rate to 69.5%.

    Also, the central bank has put up its 28-day monetary policy rate 9.5% percentage points.

    The bank raised the rate by 8 percentage points two weeks ago.

    “The rise in the policy rate will help reduce inflation expectations for the remainder of the year,” the bank said in a statement.

    The country’s inflation rate has hit a 20-year high of over 70%. It is forecast to reach 90% by the end of 2022.

    Controlling soaring prices, tackling high debt levels and reining in government spending in South America’s second largest economy are at the top of the agenda for Argentina’s latest economy minister, Sergio Massa.

    Mr Massa hopes to calm inflation using a more conventional approach than his predecessors.

    He is looking at raising interest rates and preventing the printing of more money to fund government spending.

    In July, Martín Guzmán resigned as finance minister after being in the role for more than two and a half years. His successor Silvina Batakis lasted just a month in the post.

    Earlier this year, Argentina avoided defaulting on a $44bn International Monetary Fund loan.

    However, the impact of measures the government has to implement to meet the conditions of the deal is a major cause of concern for many in the country.

    In recent weeks, protestors have taken to the streets of the capital Buenos Aires to demonstrate against President Alberto Fernández’ handling of the economy.

  • High cost of living : Germany announces tax plan review

    In response to the inflation crisis, the German Finance Ministry has unveiled a plan to reduce income taxes. However, critics claim the measures would benefit top earners the most, and squeeze public spending.   

    The price of food, as well as energy, has increased with inflation hitting its highest in decades

    German Finance Minister Christian Lindner on Wednesday announced measures to raise tax thresholds and increase child benefits slightly.

    The plans are intended to help ease the burden of rising inflation for households, amid rising food and energy prices.

    What does the plan entail?

    Rather than directly cutting taxes, the proposals would raise the threshold from which tax is paid, including the level from which the highest rate is levied.

    The Finance Ministry is set to raise the tax-free allowance from €10,347 (roughly $10,550) currently to €10,632 next year and €10,932 in 2024. People start paying income tax on earnings after this figure.

    The top tax rate, which currently kicks in from €58,597 at present will increase to €61,972 next year and from €63,515 in 2023.

    Meanwhile, child benefit payments for the first two children are set to rise by €8 to €227 per month, along with other increases for families with more than two children.

    As a result, the Finance Ministry expects tax revenue to drop by €10.12 billion next year, and by €17.5 billion in 202

    What is inflation?

    Criticism inside and outside the coalition

    There was criticism for the plans from within the three-way coalition, of which Lindner’s Free Democrats are the most pro-business and neoliberal member ideologically.

    Politicians from fellow junior coalition partners the Greens have attacked the plans as regressive, saying they provide the greatest advantage to the already wealthy.

    “Billions in tax relief from which high earners benefit three times as much in absolute terms than those with lower incomes — that is not in keeping with the times,” Katharina Beck, the Green Party spokeswoman on financial affairs, told the RND newsgroup.

    “The opposite would be the right thing. Strong shoulders should have to bear more than those on a low income and should not be disproportionately relieved. These really hard times especially affect those who have little money.”

    There was also criticism from Berlin Mayor Franziska Giffey, of Olaf Scholz’s Social Democrats — the leading coalition partner — who said more targeted relief was needed. She told the Welt news channel that tax cuts and across-the-board child benefit increases would not help those most in need.

    “Another child benefit increase is nice for those who get it. But again, it doesn’t help pensioners, and it doesn’t help students either.”

    Weak euro Good news for who?

    Lindner defends measures

    Speaking in response to the criticism, Lindner said that, in all, some 48 million would benefit from the tax changes.

    He said the changes were aimed at relieving the pressure on people whose income was pushed into taxation at higher rates as salaries rise because of inflation. This, combined with higher living costs, would effectively push down their spending power — a phenomenon known as “cold progression.”

    The measures would provide relief to those taxpayers with an annual income below €62,000, Lindner said.

    “This is not about a relief, but about removing a burden,” Lindner said. The minister said he was also in favor of “strong shoulders bearing more than narrow shoulders.”

    However, he said, the cold progression would also “burden people whose shoulders have not become broader at all.”

    Left Party urges spending, not cuts

    The chairman of the socialist Left Party, Martin Schirdewan, said the plan would squeeze public spending at the expense of ordinary people.

    “Because Lindner refuses to give the rich and crisis profiteers a greater part in financing the costs of the crisis — and at the same time sticks to the debt brake, or better put, the investment brake — predictably money will be lacking for necessary social spending and investments,” Schirdewan told the AFP news agency.

    “Those who unilaterally cut taxes also dry up the state budget and create a pressure to save money, usually at the expense of the general public and urgent public tasks.”

  • Inflation hits 29.8% in June 2022; transport, food among major drivers

    Year-on-year inflation shot up further by 2.2% to 29.8% in June 2022, latest data from the Ghana Statistical Service (GSS) has revealed.

    This is the highest recorded since December 2003.

    However, the rate of inflation, according to the inflation curve, has begun slowing down comparatively to previous months.

    The rate of inflation was once again driven by Transport (41.6%); Household Equipment and Maintenance (39.6%); Housing, Water, Gas and Electricity (38.4%); Personal Care and Miscellaneous (31.7%); Recreation, Sports and Culture (31.3%) and Food and Non-Alcoholic Beverages (30.7%). These items recorded inflation rates higher than the national average.

    According to the figures, food inflation surged to 30.7% in June 2022, from 30.1% recorded in May 2022. Non-food inflation also went up by 3.4% to 29.1% in June 2022.

    For food inflation, Oil and Fats (58%); Water (43.2%); Cereal Products (38.4%); Fruit and Vegetable Juices (37.3%); Milk, Diary Products and Eggs (35.7%); Fish and Other Sea Food (34.7%); Live Animals and Meat (33.5%); Soft Drinks (31.1%); Cocoa Drinks (30.9%) and Sugar and Deserts (30.1%) recorded the highest rates of inflation.

    Similarly, month-on-month inflation between May 2022 and June 2022 was 3.0%.

    Whilst inflation for locally produced items was 29.2%, that of imported items was 31.3%.

    Eastern region records highest inflation rate

    The Eastern region recorded the highest inflation rate of 35.8% in the month of June 2022.

    It was followed by Western region with an inflation rate of 33.9% and then Central region with an inflation rate of 31.6%.

    On the other hand, the Greater Accra and Ashanti regions recorded inflation rates of 30.9% and 27.2% respectively.

    The Upper East region recorded the lowest rate rate of inflation of 21%. The region again recorded the lowest inflation rate of 19.9% for food inflation.

    Eastern region registered the highest rate of inflation of 35.5% for non-food inflation.

    Source: MyJoyOnline

  • Inflation hits highest since August 2009

    Inflation for the month of March has been pegged at 19.4%, the highest rate recorded since August 2009.

    The rise in inflation will mean that interest rates will continue surging resulting in the rise of the cost of credit.

    The Ghana Statistical Service stated that foodstuffs such as Oil and Fats (28.2%), Water (27.1%), Cereal Products (25.0%), Vegetables (23.8%), Fish and Other Seafood (23.7%), Fruits and Nuts (22.1%), Soft Drinks (20.5%) and Live Animals and Meat (20.2%) recorded inflation rate, higher than the national average.

    Transport which includes fuel recorded the highest inflation rate of 27.6%, followed by Housing which was 21.4%.

    The figures showed that food inflation recorded a rate of 22.4% in March 2022, away from the 17.4% recorded in February 2022.

    However, the non-food inflation rate was 17.0% in March 2021, from the 14.5% rate in February 2022.

    Also, between February 2022 and March 2022, month-on-month inflation was 4.0%.

    Food inflation exceeded non-food inflation by 0.8 percentage points on a month-on-month basis.

    Local inflation also shot up to 20% in March 2022, as against 17.3% of imported goods or inflation.

    The Bono Ahafo region recorded the highest rate of inflation of 23.3%.

    Upper East region recorded the lowest rate of inflation of 12.5%.

    Source: www.ghanaweb.com

  • Food prices, transport fares push inflation to 19.4%; highest since August 2009

    Rising cost of food prices pushed inflation rate in the month of March 2022 to 19.4%, the highest since August 2009, the Ghana Statistical Service has revealed.

    Foodstuffs such as Oil and Fats (28.2%), Water (27.1%), Cereal Products (25.0%), Vegetables (23.8%), Fish and Other Seafood (23.7%), Fruits and Nuts (22.1%), Soft Drinks (20.5%) and Live Animals and Meat (20.2%) recorded inflation rate, higher than the national average.

    According to the figures, food inflation recorded a rate of 22.4% in March 2022, compared to 17.4% in February 2022.

    Non-food inflation however recorded a rate of 17.0% in March 2021, from 14.5% recorded in February 2022.

    Transport including fuel recorded the highest inflation rate of 27.6%, followed by Housing with an inflation rate of 21.4%.

    Month-on-month inflation between February 2022 and March 2022 was 4.0%. However, on a month-on-month basis, food inflation exceeded non-food inflation by 0.8 percentage points.

    Also, local inflation shot up to 20% in March 2022, as against 17.3% of imported goods or inflation.

    The rising inflation means interest rates will continue to surge, whilst cost of credit will also go up.

    Bono Ahafo region records highest regional inflation of 23.3%

    For the first time in a while, the Bono Ahafo region recorded the highest rate of inflation of 23.3% in the country.

    Upper East region recorded the lowest rate of inflation of 12.5%.

    Globally, inflation rate has been surging because of the Russian/Ukraine war which has impacted negatively on cereals and grains as well as supply of fertilizer.

    The rate of inflation in USA and UK currently stands at 8.5% and 7% in March 2022.

    Source: myjoyonline.com

  • January records highest inflation since 2019 rebasing

    The month of January 2022 has recorded the highest inflation of 13.9% since 2019 rebasing.

    The figure is 1.3% percent higher than what was recorded in December 2021 which stood at 12.6%. 

    The figure (13.9%) indicates that the general price level was 13.9% higher than January 2021which stood at 9.9%.

    The Month-on-month inflation between December 2021 and January 2022 was 2.1%. 

    Food inflation also increased from 12.8% recorded in December 2021 to 13.7%.

    Non-food group for the first time in seven months recorded inflation of 14.1%, exceeding that of the food group.

    Housing and Transport (which includes fuel) once again were the two Divisions that recorded the highest inflation (28.7% and 17.4% respectively).

    The contribution of Housing, Water, Electricity, and Gas to overall inflation increased by 4.6 percentage points (from 17.5% in December 2021 to 22.1% in January 2022).

    Inflation for locally produced items continues to dominate imported items.

    On the regional level, Greater Accra regained its lead in overall inflation with the Upper West region still recording the highest food inflation.

    Source: atinkaonline.com

  • Food, transport dominant drivers for 7.8% inflation in June 2021

    The Year-on-year inflation stood at 7.8 per cent in June compared to 7.5 per cent in May, pushed slightly by transport and food items, the Government Statistician Professor Samuel Kobina Annim said on Wednesday.

    Speaking at a press briefing to announce the rate, Prof Annim said food and transport were the dominant drivers for the higher rate of inflation in June 2021.

    Food contributed 41.8 per cent to overall inflation while transport contribution increased from 16.5 per cent last month to 18.1 per cent.

    “Inflation for June 2021 indicates that the six-month continuous decline in food inflation has been reversed by 1.9 percentage points,” he said.

    The Month-on-Month inflation was 1.3 per cent while the Month-on-month food inflation exceeds non-food inflation by 1.0 percentage point.

    Year-on-year variation between food 7.3 per cent and non-food inflation 8.2 per cent was 0.9 per cent.

    “A reversal in the declining trend of food inflation has been observed for the first time in six months as it increases by 1.9 percentage points between May and June 2021. This has contributed in closing the gap between food and non-food inflation,” Prof Annim said.

    Inflation for locally produced items has regained its dominance over inflation for imported items, surpassing inflation for imported items by 0.9 percentage points.

    Inflation for locally produced items was 7.9 per cent compared to that of imported items at 7.0 per cent.

    The Northern Region continues to record higher Year-on-Year food inflation at 16.2 per cent, closely followed by Upper West 14.8 per cent and distantly next is Greater Accra at 9.9 per cent.

    The Western Region recorded a deflation in food inflation by 1.1 per cent.

    Overall, Greater Accra recorded the highest rates of inflation for both non-food 14.4 per cent and overall inflation at 12.5 per cent.

    Source: GNA

  • Inflation rate unchanged at 10.3 percent in March

    The year-on-year inflation rate for March 2021 was unchanged at 10.3 percent.

    The month-on-month inflation between February 2021 and March 2021 was 0.2 percent.

    Professor Samuel Kobina Annim, the Government Statistician, said the year-on-year variation between Food (10.8 percent) and Non-Food inflation (10.0 percent) narrowed to 0. 8 percent.

    The Month-on-Month non-food inflation exceeded food inflation by 12 percentage points, he said.

    Housing, Water, Electricity and Gas, especially in Greater Accra, showed significant changes on a year-on-year and month-on-month basis for March 2021.

    The difference between locally produced items (11.7 percent) and imported items (6.8 percent) reduced to 4.9 percent.

    The year-on-year food inflation in the Eastern Region surpassed Greater Accra Region by more than 3 percentage points.

    With this rate, Food contributed 46.3 percent to the total inflation, the lowest, since February 2020.

    Source: GNA

  • Rate of Inflation slows to 9.8 percent in November

    The year-on-year rate of inflation slowed for the fourth consecutive month to 9.8 percent in November compared with 10.1 percent the previous month.

    Professor Samuel Annim, the Government Statistician, who announced the rate, said the drop was the fourth consecutive monthly fall post-COVID-19.

    Month-on-month inflation was 0.3 percent, he said.

    The food inflation rate stood at 11.7 percent and non-food inflation was 8.3 percent. Inflation in locally produced items stood at 11.5 percent and imported items at 5.6 percent.

    Prof. Annim said stark variation continued to exist across regions, and source and type of items.

    At the regional level, the overall year-on-year inflation ranged from 3.4 percent in the Upper West and Volta Regions to 15.2 percent in Greater Accra.

    Prof. Annim said Greater Accra was the only region which recorded a food inflation rate of 13.7 percent.

    Source: GNA

  • October inflation hits 10.1%

    The October 2020 inflation rate was 10.1 percent, 0.3 percentage point lower than what was recorded last month, the Ghana Statistical Service (GSS) has announced on Wednesday, November 11.

    According to the GSS, the month-on-month inflation between September 2020 and October 2020 was 0.2 percent.

    This contrasts with the negative month-on-month inflation that was observed in the previous two months.

    However, this 0.2 percent is still less than observed either pre-Covid or in the months since Covid-19, the GSS added.

    On average month-on-month inflation between April to July 2020 was 0.9 percent and in the six months prior to Covid-19 month-on-month inflation rate was 0.7 percent.

    Again, just two of the 13 divisions had higher-than-average inflation rates Housing, Water, Electricity and Gas (20.2%) and Food and Non-Alcoholic Beverages (12.6%).

    At the regional level, the overall year-on-year inflation ranged from 1.6 percent in the Upper West Region to 15.2 percent in the Greater Accra Region.

    In Greater Accra, the difference between Food (14.0%) and Non-Food inflation (16.0%) was just 2 percentage points, while in Ashanti Region this difference was 13 percentage points (17.6% compared to 4.6%).

    On a month-on-month basis, Northern Region recorded the highest inflation (1.1%) and Upper West the lowest (-2.4%).

    On average, rural areas showed a higher month-on-month (0.3%) but lower year-on-year inflation (8.8%) than urban areas (0.2% month-on-month and 10.5% year-on-year).

    The Food and Non-Alcoholic Beverages Division recorded a year-on-year inflation rate of 12.6%. This is 1.4 percentage point higher than in August 2020 (11.2%).

    This higher inflation rate for Food translates into Food having a higher contribution to overall inflation. Food contributed 54.7% to the total inflation and thus is still the predominant driver of year-on-year inflation.

    Within the Food Division, Vegetables (24.9%) was the subclass with the highest rates of inflation. This high inflation for Vegetables is explained by the relatively low index for Vegetables back in October, 2019.

    Compared to both September and November 2019, inflation for Vegetables would be closer to the numbers reported in the last months of around 17%. Consonant previous months, month-on-month inflation for Vegetables was negative (- 1.6%). Overall month-on-month Food inflation was -1%.

    In contrast to Food inflation, Non-Food inflation decreased. Year-on-year Non-Food inflation came in at 8.3%. This is the lowest rate since April 2020.

    Month-on-month Non-Food inflation was 0.3%. Three Divisions had higher month-on-month inflation between September and October 2020 than on average was recorded for these Divisions in the months before the Covid-19 pandemic.

    The other ten divisions showed lower than average rates of month-on-month inflation.

    Source: 3 News

  • Inflations falls again to 10.4%

    Inflation fell marginally by 0.1% in September 2020 to record a rate of 10.4%.

    According to figures from the Ghana Statistical Service, the slight drop was influenced by reduction in some prices of food stuffs.

    Month-on-month inflation between August 2020 and September 2020 was however -0.2%. Last month, the month-on-month inflation was also negative (- 0.4%).

    On average month-on-month inflation between April to July 2020 was 0.9% and in the six months prior to COVID19 month-on-month inflation rate was 0.7%.

    The GSS said only two of the 13 Divisions had higher than average inflation rates. They were Housing, Water, Electricity and Gas (20.3%) and Food and Non-Alcoholic Beverages (11.2%).

    Whilst Food and Non-Alcoholic Beverages Division recorded a year-on-year inflation rate of 11.2%, Non-Food inflation stood at 9.8%

    Within the Food Division, Vegetables (18.9%) was the Subclass with the highest rates of inflation. This is lower than in the previous months.

    Health, Restaurants and Accommodation Services and Information and Communication, were three divisions that recorded higher month-on-month inflation rates between August and September 2020 than on average during the months April to July 2020 and before COVID-19.

    Imported and local inflation

    The inflation of imported goods was 5.1%, while the inflation of local goods was 12.3% on average. Month-on-month inflation for imported goods was however 0.4%, while month-on-month inflation for local goods was -0.5%.

    The main contributor to negative local inflation was the inflation of locally produced foods.

    Regional inflation

    For the regions, the Greater Accra region continued to record the highest rate of inflation of 14.2%, whilst the Upper West recorded the lowest inflation rate of 1.3%.

    The GSS said most regions recorded a lower year-on-year inflation this month compared to previous months.

    Source: myjoyonline

  • Producer Price Inflation Rate falls to 9.3 percent in July

    The Producer Price Inflation (PPI) rate fell slightly in July to 9.3 percent compared with a revised 9.5 percent recorded in June.

    The month-on-month change in producer price index between June 2020 and July 2020 was 1.7 percent.

    The Ghana Statistical Service explained that the marginal decrease in all Industry Inflation Rate from 9.5 percent in June 2020 to 9.3 percent in July 2020 was as a result of the decline in inflation rate in the Utility sub-sector.

    This was contained in a statement from the Ghana Statistical Service and copied to the Ghana News Agency in Accra on Wednesday.

    The Mining and Quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 38.2 percent, followed by the utility sub-sector with 5.8 percent.

    It said the decrease in the Utility sub-sector inflation rate from 12.0 percent in June 2020 to 5.8 percent in July 2020 was as a result of base drift effect.

    “The base drift is as a result of increases in electricity prices by 11.2 percent and water by 8.0 percent on July 1, 2019,” it said.
    The Manufacturing sub-sector recorded the lowest year-on-year producer inflation rate of 4.4 percent.

    For the monthly changes, the mining and quarrying sub-sector recorded the highest inflation rate of 7.2 percent, followed by manufacturing sub-sectors with 0.8 percent.

    The Utility sub-sector recorded no inflation rate in July 2020.
    The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services.

    Source: GNA

  • Producer Price Inflation for June hits 8.7 percent

    The Producer Price Inflation (PPI) rate for June was 8.7 percent compared to 8.4 percent recorded in May.

    The month-on-month change in producer price index between May 2020 and June 2020 was 1.8 percent.

    The Mining and Quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 35.2 percent, followed by the utility sub-sector with 12.1 percent.

    This was contained in a statement from the Ghana Statistical Service and copied to the Ghana News Agency in Accra on Wednesday.

    Professor Samuel Kobina Annim, the Government Statistician, explained that the Manufacturing sub-sector recorded the lowest year-on-year producer inflation rate of 2.7 percent.

    For the monthly changes, Prof Annim said the manufacturing sub-sector recorded the highest inflation rate of 2.3 percent, followed by mining and quarrying sub-sectors with 1.8 percent.

    The Utility sub-sector recorded no inflation rate in June 2020.

    The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services.

    Source: GNA

  • June records 8.7% producer price Inflation

    The Producer Price Inflation rate for June 2020 was 8.7 percent, the Ghana Statistical Service (GSS) has announced on Wednesday July 22.

    This rate, according to the GSS, indicates that between June 2019 and June 2020 (year-on-year), the PPI increased by 8.7 percent.

    This rate represents a 0.3 percentage point increase in producer inflation relative to the rate recorded in May 2020 (8.4%).

    The month-on-month change in producer price index between May 2020 and June 2020 was 1.8 percent.

    The producer price inflation in the Mining and Quarrying sub-sector decreased by 7.3 percentage points over the May 2020 rate of 42.5 percent to record 35.2 percent in June 2020.

    The producer inflation for Manufacturing which constitutes more than two-thirds of the total industry increased by 1.6 percentage points to record 2.7 percent.

    The utility sub-sector recorded an inflation rate of 12.1 percent for June 2020 indicating no change in producer inflation recorded in May 2020.

    During June 2020, nine out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 2.7 percent.

    Manufacture of food products and beverages recorded the highest inflation rate of 8.5 percent, while the Manufacture of coke, refined petroleum products and nuclear fuel recorded the least inflation rate of -4.5 percent.

    The producer inflation rate in the petroleum sub-sector was 1.2 percent in June 2019. Subsequently, the rate increased to record 3.1 percent in August 2019 but declined to -5.7 percent in October 2019.

    Thereafter the rate increased consistently to record 20.6 percent in January 2020 but constantly declined to record -15.4 percent in May 2020. However, the rate increased again to record -5.4 percent in June 2020.

    Source: Laud Business

  • Imported goods recorded 4.7% inflation

    The inflation of imported goods was 4.7%, while the inflation of local goods was 13.9% on average, the Ghana Statistical Service (GSS), has announced.

    The GSS said in a statement on Wednesday that the month-on-month inflation for imported goods was 0.7%, while month-on-month inflation for local goods was 1.1%.

    Both of these percentages are lower than the corresponding numbers last month (0.8% for imported and 2.1% for locally produced goods).

    The main contributor to local inflation was the inflation of locally produced foods.

    Meanwhile, the Food and Non-Alcoholic Beverages Division recorded a year-on-year inflation rate of 13.8%.

    According to the GSS, this is 1.3 percentage points lower than May 2020 (15.1%), but 5.9 percentage points higher than the average over the eight months preceding March 2020 (7.9%).

    Within the Food Division, Vegetables (28.8%) and Fruits and Nuts (17.4% ) were the Subclasses with the highest rates of inflation (see Figure 4). Month-on-month the inflation for Fruits and Nuts stood at 3.0% while Vegetables recorded a negative inflation of -2.1%.

    As Food contributed 54.4% to year-on-year inflation, it is still the predominant driver of year-on-year inflation, but it contributed less than the previous two months.

    Month-on-month Food inflation was 0.1%, which is less than the overall month-on-month inflation and the month-on-month Food inflation in May (2.3%) and April 2020 (6.4%).

    Non-food inflation came in at 9.2%, which is higher than the 8.4% measured in May 2020. Like last month, the Division with the highest month-on-month inflation was Housing, Water, Electricity and Gas (5.4%).

    Compared to earlier months, Housing, Water, Electricity and Gas (20%) also contributed more to year-on-year inflation. This is driven by an increase in Rent prices and inflation for refuse collection

    The Non-Food Subclasses with the lowest inflation were Fuels and Lubricants for Personal Transport Equipment (-13.5%), Electricity (-35.6%) and Electric Appliances for Personal Care (-66.9%).

    The national average rate recorded 11.2% in June.

    Source: laudbusiness.com

  • Mining drives Producer Inflation in May 2020

    For a second straight month, the mining and quarrying sub-sector has been the lead driver of producer inflation, as the index in the month of May 2020 recorded an increase to 8.4 percent, data from the Ghana Statistical Service (GSS) has shown.

    This rate represents a 1.0 percentage point increase in producer inflation relative to the rate recorded in April 2020 at 7.4 percent.

    During the month, the manufacturing sub-sector, which constitutes more than two-thirds of total industry, also contributed marginally to the increase in the all industry rates.

    The producer price inflation in the Mining and Quarrying sub-sector increased by 4.5 percentage points over its April 2020 rate of 38.0 percent to record 42.5 percent in May 2020, whereas the producer inflation for Manufacturing increased by 0.6 percentage points to record 1.1 percent.

    The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services.

    Undoubtedly, the continuous increase in demand for gold as a safe haven with regards to value, has been a key contributor to the rates upsurge for May 2020.

    The Government Statistician, Professor Samuel Kobina Annim affirmed this, saying, “The increase in the Mining and Quarrying inflation rate from 38.0 percent in April 2020 to 42.5 percent in May 2020 was as a result of increases in the price of gold in May 2020 and the depreciation of the local currency.”

    Amidst the coronavirus pandemic, the World Gold Council have affirmed that, in the short-term there is risk and uncertainty, where market downturns often boost investment demand for gold as a safe haven asset.

    Further to this, the Council stated that opportunity cost representing the perceived relative value of competing assets including bonds (interest rates) and currencies, influence investor attitudes towards gold. More often than not, three variables capture this theme in the form of the nominal 10-year U.S. Treasury bond yields, a developed market currency index and an emerging market currency index.

    The price of gold on the international market rose from about US$ 1,702.75 per ounce on April 30, 2020 to US$ 1,717 per ounce as at May 28, 2020. The commodity was trading at US$ 1,724.35 per ounce as at June 17, 2020.

    For the Manufacturing sector, the Government Statistician said, “The marginal increase in the manufacturing sector inflation rate from 0.5 percent in April 2020 to 1.1 percent in May 2020 was as a result of increases in an inflation rate for the manufacture of other non-metallic minerals products from 9.9 percent in April 2020 to 12.7 percent in May 2020.”

    Trends

    In May 2019, the producer price inflation rate for all industry was 6.7 percent. The rate then increased consistently to record 10.2 percent in August 2019 but declined to 8.9 percent in October 2019. The rate then increased again continuously to record 14.5 percent in January 2020 but thereafter declined to record 6.8 percent in March 2020. However, the rate increased again to record 8.4 percent in May 2020.

    Source: goldstreetbusiness.com

  • Greater Accra recorded highest inflation rate in May

    The overall year-on-year inflation ranged from 3.1% in the Upper East Region to 13.3% in Greater Accra, the Ghana Statistical Service (GSS), has announced on Wednesday, June 10.

    The GSS said when comparing Food to Non-Food inflation, there are clear differences between regions.

    Ashanti (22.3%) and Western Region (19.8%) had the highest rates of Food inflation, while Eastern Region saw the highest Non-Food inflation (12.8%).

    The Upper East, Northern, Eastern, and Volta Regions experienced higher Non-Food than Food inflation, the opposite was true for the other six regions.

    The month-on-month inflation rate between regions also differ.

    The overall month-on-month inflation was between -1.5% in the Volta Region and 3.9% in the Ashanti Region.

    The Western Region recorded a month-on-month Food inflation rate of 6.9%, while the Volta Region saw a decrease of -3.3%.

    Greater Accra saw overall month-on-month inflation of 0.7% and a Food month-on-month inflation of -0.4%. See Figure 5, for the other regional month-on-month inflation rates.

    The Food and Non-Alcoholic Beverages Division recorded a year-on-year inflation rate of 15.1%. This is 0.7 percentage point higher than April 2020 (14.4%) and 7.2 percentage points higher than the average over the eight months preceding March 2020 (7.9%).

    This translates to Food being the predominant driver of year-on-year inflation. Food contributed 58.6% of the year-on-year inflation in April 2020.

    Month-on-month Food inflation stood at 2.3%, which is less than the 6.4% that was recorded between March 2020 and April 2020.

    The Division with the highest month-on-month inflation between April and March 2020 was Housing, Water, Electricity and Gas (4.3%).

    In the previous two months, the majority of Divisions recorded higher month-on-month inflation rates than the average month-on-month inflation rates between October 2019 and March 2020.

    Month-on-month Transport inflation was on average +0.3% between October 2019 and March 2020, but -1.7% between March and April and 0.6% between April and May. Within the Food Division, Vegetables (34.9%) and Fruits and Nuts (21.5% ) were the Subclasses with the highest rates of inflation.

    For the Housing Division, the Subclasses Rents Paid by Tenants (21.0%) and Refuse Collection (48.9%) recorded the highest inflation rates. Month-on-month Transport inflation was negative due to the month-on-month price indices decreases for Diesel (-10.9%) and Petrol (-8.7%).

    The national year-on-year inflation rate was 11.3% in May 2020, which is 0.7 percentage points higher than last month, the Ghana Statistical Service (GSS), has announced.

    Month-on-month inflation between April 2020 and May 2020 was 1.7%, the GSS added.

    This is lower than the 3.2% recorded between March and April 2020, but higher than the average month-on-month inflation recorded in the months October 2019 to March 2020 (0.7%).

    Only two of the thirteen Divisions had higher than average inflation rates; Food and Non-Alcoholic Beverages and Housing, Water, Electricity and Gas (both 15.1%).

    Source: laudbusiness.com

  • High demand for food pushes inflation up, hits 11.3%

    The general price levels of goods and services, according to Ghana Statistical Service, have further increased in the month of May following price hikes by traders due to the coronavirus pandemic effects.

    General prices increased by 0.7 of a percentage point over the previous month, as it recorded 11.3 percent in May 2020 largely driven by food and non-alcoholic products, and water, electricity and gas.

    Both the food and non-alcoholic products, and water, electricity and gas recorded the same inflation rate of 15.1 percent. The non-food basket also followed the same trajectory as it recorded 8.4 percent inflation compared to the 7.7 percent recorded the previous month.

    Inflation for imported goods was 4.8 percent, while the inflation of local goods was 14.1 percent on average. This is the highest rate of local inflation and the lowest rate of imported goods inflation since the rebasing in August 2019, with the main contributor to local inflation being locally produced foods.

    This could be a result of high demand for food as a chunk of the population have remained at home to observe the COVID-19 protocols, thereby putting pressure on food producers to deliver as importation is no longer coming in due to closure of borders. And as a general rule of economics, the higher the demand, the higher the price hence reflecting in the high inflation rate of locally-produced items.

    At the regional level, the year-on-year inflation rate ranged from 3.1 percent in the Upper East Region to 13.3 percent in the Greater Accra Region. Ashanti (12.8 percent), Eastern (12.8 percent), and Western Region (12.1 percent), all recorded inflation rates above the national average of 11.3 percent.

    Last month, a surge in inflation from 7.8 percent to 10.6 percent, coupled with the pandemic impacts on the economy, prevented the Bank of Ghana from further cutting the policy rate.

    According to Governor of the Bank of Ghana, Dr. Ernest Addison, the jump in inflation points to an elevated risk to the inflation outlook, which may result in the rate peaking in the second quarter; hence, it is prudent to hold the policy rate at the current 14.5 percent.

    “The recent rise in inflation is projected to peak in the second quarter and begin returning to the disinflation path in subsequent quarters, with inflation settling within the medium-term target band by the end of the year.

    “On the growth outlook, baseline projections show a sharp downturn in GDP growth; with the economy operating below capacity in the medium-term. Under the circumstances, and given the balance of risks to inflation and growth, the Committee decided to keep the policy rate unchanged at 14.5 percent,” he said at a meeting with journalists in Accra.

    Source: B&FT Online

  • Import records 4.8% inflation in May, lowest since August 2019

    Inflation of imported goods was 4.8%, while the inflation of local goods was 14.1% on average in May 2020, the Ghana Statistical Service (GSS), has announced on Wednesday, June 10.

    According to the GSS, this is the highest rate of local inflation and the lowest rate of imported goods inflation since the rebasing in August 2019.

    Month-on-month inflation for imported goods was 0.8%, while month-on-month inflation for local goods was 2.1%. The main contributor to local inflation was the inflation of locally produced foods.

    Meanwhile, the GSS said the overall year-on-year inflation ranged from 3.1% in the Upper East Region to 13.3% in Greater Accra, the Ghana Statistical Service (GSS), has announced on Wednesday, June 10.

    The GSS said when comparing Food to Non-Food inflation, there are clear differences between regions.

    Ashanti (22.3%) and Western Region (19.8%) had the highest rates of Food inflation, while Eastern Region saw the highest Non-Food inflation (12.8%).

    The Upper East, Northern, Eastern, and Volta Regions experienced higher Non-Food than Food inflation, the opposite was true for the other six regions.

    The month-on-month inflation rate between regions also differ.

    The overall month-on-month inflation was between -1.5% in the Volta Region and 3.9% in the Ashanti Region.

    The Western Region recorded a month-on-month Food inflation rate of 6.9%, while the Volta Region saw a decrease of -3.3%.

    Greater Accra saw overall month-on-month inflation of 0.7% and a Food month-on-month inflation of -0.4%. See Figure 5, for the other regional month-on-month inflation rates.

    The Food and Non-Alcoholic Beverages Division recorded a year-on-year inflation rate of 15.1%. This is 0.7 percentage point higher than April 2020 (14.4%) and 7.2 percentage points higher than the average over the eight months preceding March 2020 (7.9%).

    This translates to Food being the predominant driver of year-on-year inflation. Food contributed 58.6% of the year-on-year inflation in April 2020.

    Month-on-month Food inflation stood at 2.3%, which is less than the 6.4% that was recorded between March 2020 and April 2020.

    The Division with the highest month-on-month inflation between April and March 2020 was Housing, Water, Electricity and Gas (4.3%).

    In the previous two months, the majority of Divisions recorded higher month-on-month inflation rates than the average month-on-month inflation rates between October 2019 and March 2020.

    Month-on-month Transport inflation was on average +0.3% between October 2019 and March 2020, but -1.7% between March and April and 0.6% between April and May. Within the Food Division, Vegetables (34.9%) and Fruits and Nuts (21.5% ) were the Subclasses with the highest rates of inflation.

    For the Housing Division, the Subclasses Rents Paid by Tenants (21.0%) and Refuse Collection (48.9%) recorded the highest inflation rates. Month-on-month Transport inflation was negative due to the month-on-month price indices decreases for Diesel (-10.9%) and Petrol (-8.7%).

    The national year-on-year inflation rate was 11.3% in May 2020, which is 0.7 percentage points higher than last month, the Ghana Statistical Service (GSS), has announced.

    Month-on-month inflation between April 2020 and May 2020 was 1.7%, the GSS added.

    This is lower than the 3.2% recorded between March and April 2020, but higher than the average month-on-month inflation recorded in the months October 2019 to March 2020 (0.7%).

    Only two of the thirteen Divisions had higher than average inflation rates; Food and Non-Alcoholic Beverages and Housing, Water, Electricity and Gas (both 15.1%).

    Source: laudbusiness.com

  • Inflation rate was 11.3% in May GSS

    The national year-on-year inflation rate was 11.3% in May 2020, which is 0.7 percentage points higher than last month, the Ghana Statistical Service (GSS), has announced.

    Month-on-month inflation between April 2020 and May 2020 was 1.7%, the GSS added.

    This is lower than the 3.2% recorded between March and April 2020, but higher than the average month-on-month inflation recorded in the months from October 2019 to March 2020 (0.7%).

    Only two of the thirteen Divisions had higher than average inflation rates; Food and Non-Alcoholic Beverages and Housing, Water, Electricity, and Gas (both 15.1%).

    At the regional level, the overall year-on-year inflation ranged from 3.1% in the Upper East Region to 13.3% in

    Greater Accra. When comparing Food to Non-Food inflation, there are clear differences between regions. Ashanti (22.3%) and Western Region (19.8%) had the highest rates of Food inflation, while Eastern Region saw the highest

    Non-Food inflation (12.8%). The Upper East, Northern, Eastern, and Volta Regions experienced higher Non-Food than Food inflation, the opposite was true for the other six regions.

    The month-on-month inflation rate between regions also differ.

    The overall month-on-month inflation was between -1.5% in the Volta Region and 3.9% in the Ashanti Region. The Western Region recorded a month-on-month Food inflation rate of 6.9%, while the Volta Region saw a decrease of -3.3%.

    Greater Accra saw an overall month-on-month inflation of 0.7% and a Food month-on-month inflation of -0.4%. See Figure 5, for the other regional month-on-month inflation rates.

    The Food and Non-Alcoholic Beverages Division recorded a year-on-year inflation rate of 15.1%. This is 0.7 percentage point higher than April 2020 (14.4%) and 7.2 percentage points higher than the average over the eight months preceding March 2020 (7.9%).

    This translates to Food being the predominant driver of year-on-year inflation. Food contributed 58.6% of the year-on-year inflation in April 2020.

    Month-on-month Food inflation stood at 2.3%, which is less than the 6.4% that was recorded between March 2020 and April 2020.

    The Division with the highest month-on-month inflation between April and March 2020 was Housing, Water, Electricity, and Gas (4.3%).

    In the previous two months, the majority of Divisions recorded higher month-on-month inflation rates than the average month-on-month inflation rates between October 2019 and March 2020.

    Month-on-month Transport inflation was on average +0.3% between October 2019 and March 2020, but -1.7% between March and April and 0.6% between April and May. Within the Food Division, Vegetables (34.9%) and Fruits and Nuts (21.5% ) were the Subclasses with the highest rates of inflation.

    For the Housing Division, the Subclasses Rents Paid by Tenants (21.0%) and Refuse Collection (48.9%) recorded the highest inflation rates. Month-on-month Transport inflation was negative due to the month-on-month price indices decreases for Diesel (-10.9%) and Petrol (-8.7%).

    Source: laudbusiness.com

  • Petroleum records -15.3% Producer Price Inflation in April

    The producer inflation rate in the petroleum sub sector was 17.2 percent in April 2019. The rate declined continuously to record 1.2 percent in June 2019.

    However, it increased to 3.1 percent in August 2019 but declined again to -5.7 percent in October 2019.

    Thereafter the rate increased consistently to record 20.6 percent in January 2020 but constantly declined to record -15.3 percent in April 2020.

    The Ghana Statistical Service GSS), said this on Wednesday May 20.

    In the manufacturing Sector, the GSS said during April 2020, fifteen out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 0.5 percent.

    Manufacture of machinery and equipment. recorded the highest inflation rate of 24.7 percent, while the Manufacture of coke, refined petroleum products and nuclear fuel recorded the least inflation rate of -15.3 percent.

    The producer price inflation in the Mining and Quarrying sub-sector increased by 14.3 percentage points over the March 2020 rate of 23.7 percent to record 38.0 percent in April 2020.

    The producer inflation for Manufacturing which constitutes more than two-thirds of the total industry decreased by 1.6 percentage points to record 0.5 percent. The utility sub-sector recorded an inflation rate of 12.1 percent for April 2020 indicating a decrease of 0.1 percentage point over the March 2020 rate of 12.2 percent.

    In April 2019, the producer price inflation rate for all industry was 7.1 percent. The rate declined to 6.7 percent in May 2019. Since then, the rate increased consistently to record 10.2 percent in August 2019 but declined to 8.9 percent in October 2019.

    The rate then increased again continuously to record 14.5 percent in January 2020 but declined to record 6.8 percent in March 2020. The rate increased again to record 7.4 percent in April 2020.

    Regarding the national rate, the GSS said the Producer Price Inflation (PPI) rate for April 2020 was 7.4 percent

    This rate indicates that between April 2019 and April 2020 (year-on-year), the PPI increased by 7.4 percent. This rate represents a 0.6 percentage point increase in producer inflation relative to the rate recorded in March 2020 (6.8%).

    The month-on-month change in producer price index between March 2020 and April 2020 was 1.5 percent.

    Source: laudbusiness.com

  • Producer Inflation declines to 6.8 percent in March

    Producer inflation for March 2020 has declined for the second consecutive month to 6.8 percent, from 11.8 percent recorded in February, 2020, according to data released by the Ghana Statistical Service (GSS).

    This represents a 3.7 percentage point decrease in producer inflation relative to the rate recorded in February 2020.

    The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services.

    From the data, the decline emanated largely from the manufacturing sector, which constitutes more than two-thirds of the total industry, as well as the mining and quarrying sector.

    The manufacturing sector decreased by 4.7 percentage points to record 2.1 percent, while the Mining and Quarrying sub-sector decreased by 2.4 percentage points from the February 2020 rate of 26.1 percent to record 23.7 percent in March 2020.

    The utility sub-sector recorded an inflation rate of 12.1 percent for March 2020 indicating a decrease of 0.1 percentage point from the February 2020 rate of 12.3 percent.

    Manufacturing

    During March 2020, ten out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 2.1 percent. Manufacture of machinery and equipment recorded the highest inflation rate of 24.7 percent, while the Manufacture of coke, refined petroleum products and nuclear fuel recorded a deflation rate of -9.6 percent

    The producer inflation rate in the petroleum subsector was 13.0 percent in March 2019. In April 2019, the rate increased to record 17.2 percent but declined to 1.2 percent in June 2019. However, it increased to 3.1 percent in August 2019 but declined again to -5.7 percent in October 2019. Thereafter the rate increased consistently to record 20.6 percent in January 2020, since then, the rate has declined consistently to record -9.6 percent in March 2020.

    Trends

    In March 2019, the producer price inflation rate for all industry was 7.1 percent. In April 2019, the rate remained unchanged but declined to 6.7 percent in May 2019. Since then, the rate increased consistently to record 10.2 percent in August 2019 but declined to 8.9 percent in October 2019. The rate increased again continuously to record 14.5 percent in January 2020 but declined to record 6.8 percent in March 2020.

    Source: goldstreetbusiness.com

  • Food drives inflation for the 8th consecutive month

    For an eighth consecutive month, since the rebasing of the consumer inflation index, food inflation has been the predominant driver of year-on-year (y-o-y) inflation.

    Overall, the consumer inflation for March 2020 (y-o-y) remained flat at 7.8 percent for a third consecutive month. But the food and non-alcoholic beverages division recorded an inflation rate of 8.4 percent, y-o-y for March. This is 0.5 percentage points higher than the outcome for February and indeed is the highest food inflation since the rebasing in August 2019.

    The latest data released by the Ghana Statistical Service (GSS) indicates that even though there are four divisions with higher inflation rates, due to its relative importance in computation of consumer price inflation food and beverages accounts for nearly half of the weighted basket food has been the main driver for the last eight months. Conversely, over the last six months, transportation has become a less important contributor to the CPI.

    On a monthly basis, between February 2020 and March 2020, the price level of food and non-alcoholic beverages increased by 1.5 percent. Just as for the previous month, this rise was predominantly driven by an increase in price levels of Vegetables and Fruits and Nuts.

    Prof. Samuel Kobina Annim, Government Statistician, Ghana Statistical Service (GSS)
    “March 2020 inflation was 7.8 percent. This continued the trend of a stable inflation of about 8 percent recorded over the past seven months,” Prof. Samuel Kobina Annim, Government Statistician said in a statement.

    The Consumer Price Index (CPI) measures proportionate changes in the prices of a fixed basket of goods and services that households in Ghana consume.

    National non-food inflation for March 2020 (y-o-y) was 7.4 per cent, lower than the 7.7 percent recorded in February 2020.

    “Ghana saw a continued faster increase of prices of locally produced items at 8.8 percent, than of imported goods at 5.6 percent,” the Government Statistician said. This is the highest rate of local goods inflation and the lowest rate of imported goods inflation since the rebasing in August 2019. The trend reflects relative exchange rate stability but increasing pressure on local supply chains.

    Regional Inflation

    “Households in the Volta Region saw the highest price increase at 9.2 percent, while households in the Upper West Region only experienced a 3.5 percent inflation compared to last year,” Prof. Kobina Annim said.

    Greater Accra experience the lowest regional inflation since the rebasing in August 2019.

    Source: goldstreetbusiness.com

  • Producer Price Inflation falls to 11.8 per cent in February

    The Producer Price Inflation rate for February 2020 was 11.8 per cent, representing a 2.7 percentage point decrease relative to the rate recorded in January 2020 of 14.5 per cent.

    The month-on-month change in producer price index between January 2020 and February 2020 was negative 0.3 per cent.

    Prof. Samuel Kobina Annim, the Government Statistician, who announced the rate via a recorded message instead of a press conference in line with the directive on public gathering, said the producer price inflation in the Mining and Quarrying sub-sector decreased by 6.1 percentage points over the January 2020 rate of 32.2 per cent to record 26.1 per cent in February 2020.

    The producer inflation for Manufacturing which constitutes more than two-thirds of the total industry decreased by 2.5 percentage points to record 8.7 per cent.

    The utility sub-sector recorded an inflation rate of 12.3 per cent for February 2020 indicating a decrease of 0.3 percentage point over the January 2020 rate of 12.6 per cent.

    In February 2019, the producer price inflation rate for all industry was 5.4 per cent. In April 2019, the rate increased to 7.1 per cent but declined to 6.7 per cent in May 2019. Since then, the rate increased consistently to record 10.2 per cent in August 2019 but declined to 8.9 per cent in October 2019.

    The rate then increased again continuously to record 14.5 per cent in January 2020 but declined to record 11.8 per cent in February 2020.

    Manufacturing Sector during February 2020, five out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 8.7 per cent.

    Manufacture of machinery and equipment recorded the highest inflation rate of 24.7 per cent, while the Manufacture of textiles recorded the least inflation rate of 0.2 per cent.

    The producer inflation rate in the petroleum subsector was 8.9 per cent in February 2019.

    In April 2019, the rate increased consistently to record 17.2 per cent but declined to 1.2 per cent in June 2019.

    However, it increased to 3.1 per cent in August 2019 but declined again to a negative 5.7 per cent in October 2019.

    Thereafter the rate increased consistently to record 20.6 per cent in January 2020 but declined to record 14.4 per cent in February 2020.

    Source: GNA

  • Inflation rate closes flat at 7.8 per cent in February

    The year-on-year inflation rate was unchanged at 7.8 per cent in February, the same rate as in January 2020, the Ghana Statistical Service said on Wednesday.

    The food and non-alcoholic beverages recorded a year-on-year inflation rate of 7.9 per cent while the non-food inflation rate was 7.7 per cent, lower than the 7.9 per cent recorded in January 2020.

    Between January 2020 and February 2020 the price level of food and non-alcoholic beverages increased by 0.5 per cent, driven by an increase in price levels of vegetables, fruits and nuts, and cocoa drinks.

    In the non-food, subclasses such as transport services, postal and courier services and narcotics recorded highest year-on-year inflation, ranging from 23.1 per cent to 34 per cent.

    Inflation of imported goods was 5.9 per cent while the inflation of local goods was 8.6 per cent on average.

    At the regional level, the year-on-year inflation ranged from 9.7 per cent in the Greater Accra Region to 5 per cent in Upper west Region.

    Source: GNA

  • Inflation remains unchanged at 7.8%

    Inflation remained unchanged at 7.8% in February 2020, according to the latest figures released by the Ghana Statistical Service (GSS).

    This continued the trend of a stable inflation of about 8% recorded over the past six months.

    According to the GSS, food is still the main driver of inflation in Ghana, even though there are four divisions with higher inflation rates.

    Compared to January 2020, there was a shift in the inflation for the Housing, Water, Electricity and Gas Division, from 7.6% to 6.3%.

    This meant it contributed less to the February 2020 inflation compared to the previous inflation.

    Food inflation was 7.9% while non-food inflation was 7.7%.

    For the non-food inflation, Alcoholic Beverages, Tobacco and Narcotics (11.6%); Transport (9.9%); and Recreation (9.0%) and Clothing and Footwear were the divisions with the highest rates of inflation.

    For food inflation, price levels of Vegetables; Fruits and Nuts, Cocoa Drinks were higher than its average of 7.9%.

    Inflation of imported goods was 5.9%, while the inflation of local goods was 8.6% on average.

    For the regions, Greater Accra recorded the highest inflation rate of 9.7% whiles the region with the least inflation rate of 5% was the Upper West region.

    Source: classfmonline.com

  • Inflation Rate for January falls marginally to 7.8 percent

    The Year-on-Year Inflation rate for January fell slightly to 7.8 percent from 7.9 percent recorded in December 2019.

    The month-on-month inflation between December 2019 and January 2020 was 1.4 per cent.

    Professor Samuel Kobina Annim, the Government Statistician, said the contribution of food to inflation had increased while that of housing fell during the period.

    Alcoholic Beverages, Tobacco & Narcotics (11.1 per cent), Transport (10.5 per cent), and Housing (nine per cent) were the Divisions with the highest rates of inflation.

    The Food and Non-alcoholic beverages Division recorded a year-on-year inflation rate of 7.8 percent, a 0.5 percentage points higher than 7.3 percent in December 2019.

    The non-food year-on-year inflation for January stood at 7.9 percent.

    Between December 2019 and January 2020, the price level of Food and Non-alcoholic beverages increased by 2.3 per cent, driven by an increase in price levels of Vegetables and Fish.

    At the regional level, the year-on-year inflation ranged from 5.6 percent in the Ashanti Region to 10 percent in the Central Region.

    Source: GNA

  • Inflation for December 2019 falls to 7.9%

    Continuous reduction of food prices in the last quarter of 2019 has influenced a marginal drop in inflation for December 2019, the Ghana Statistical Service has said.

    The national year-on-year inflation rate recorded for the month is a reduction of 0.3 percentage points from the rate recorded in November of the same year.

    According to the Government Statistician, Professor Samuel Kobina Annim, apart from food inflation dominating the rate, housing and transportation also recorded a marginal change during the period.

    Introduction of higher denominations suggests inflation Ricketts-Hagan

    “The national year-on-year in?ation rate was 7.9% in December 2019, .3 percentage points lower than the 8.2% recorded in November 2019. Month-on-month in?ation between November 2019 and December 2019 was.3%.

    Alcoholic Beverages, Tobacco & Narcotics (13.5%), Transport (11.0%), and Housing (10.5%) were the Divisions with the highest rates of in?ation. Due to its relative importance in consumption, Food is the main driver of in?ation in Ghana, but less than last month” he notes.

    The Consumer Price Index (CPI) measures changes in the prices of a ?xed basket of goods and services that households in Ghana consume. This index is then referenced to thepricelevelin2018, the base year which has an index of 100. Relative changes in this index can be expressed as in?ation.

    Food and Non-food

    The Food and Non-alcoholic beverages Division recorded a year-on-year in?ation rate of 7.2%. This is 1.2 percentage points lower than what was recorded in November 2019(8.4%).

    Mining records 34.4% inflation in October

    The national non-food year-on-year in?ation for December 2019 was 8.5%, up from 8.0% recorded in November 2019. Between November 2019 and December 2019 the price level of Food and Non-alcoholic beverages went down slightly (-.6%).

    This fall is predominantly driven by a decrease in price levels of Vegetables and Fish.

    This stands, in contrast, the increase in Food in?ation between October 2019 and November 2019(+1.1%).

    Non-food subclasses with the highest year-on-year in?ation include Other transport services (34.5%), Postal and courier services (31.5%), Narcotics (28.1%), and Garden products (24.7%).

    Maintenance and repair of personal transport equipment (-10.6%), Education

    (not de?ned by level) (-8.1%),Cars (-2.3%), Sound equipment(-2.3%), and Electric appliances for personal care(-2.2%)had negative year-on-year in?ation rates.

    At the regional level, the year-on-year inflation ranged from 5.0% in the Ashanti Region to 12.0% in the Greater Accra Region.

    Source: Myjoyonline.com