February inflation drops marginally

•   Inflation is expected to record further drops if the local currency stabilises in the market.

• Inflation is expected to record further drops if the local currency stabilises in the market.

Ghana’s annual consumer price inflation fell to 18.5 per cent in February from 19.0 per cent in January,

The marginal drop is driven by stability of the local currency against its international peers.

Deputy Government Statistician, Mr. Anthony Amuzu, who announced this at a press briefing in Accra yesterday said, “The stability of the cedi was the major driver in February”.

Mr. Amuzu said he expects inflation to ease further in coming months, if the currency remains stable and in the absence of any external shocks.

After weakening nearly 4 per cent in January on seasonal high corporate dollar demand, the local currency, the cedi, has remained firm in recent weeks. It was trading at 3.8500 to the greenback on Wednesday, down 1.3 per cent year-to-date.

The IMF projects that inflation will peak before slowing to around 10 per cent at the end of the year and the central bank has been tightening monetary policy in order to contain it.

Ghana is implementing a three-year aid programme with the International Monetary Fund in an attempt to remedy fiscal problems including inflation persistently above government targets.

By Times Reporter

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