Addressing a news conference yesterday, Dr. Philomena Efua Nyarko, Government Statistician, explained that the increase was mainly driven by higher food prices.
Food inflation recorded 9.0 per cent in September, compared to 8.5 per cent in August, whilst non-food inflation stood at 21.6 per cent in September, up from 21.5 per cent the month before.
“We had a slight increase and this stems from the upward movement of the food inflation rate,” the Government Statistician said, adding that “the base index is higher than the current index.”
For the non-food inflation, Dr. Nyarko said: “we saw an increase of 1.4 per cent in imported items. We are speculating that it may be that people are expecting a higher exchange rate and also because of the election cycle, people may be adjusting their prices.”
Price drivers for the non-food items included education, housing, water, gas and other fuel, transport, whilst the price drivers for the food inflation included vegetables, mineral water, coffee, tea and cocoa.
Dr. Nyarko said the inflation rate might continue its upward trend until the end of the year, because of the impending Christmas festivities which will increase demand for goods and services.
According to the International Monetary Fund (IMF), inflation should decline to 13.5 per cent by the end of the year and the country should reach its inflation target by the middle of 2017.
The Bank of Ghana’s target over that period is eight per cent plus or minus two percentage points.
Currently in the second year of a three-year IMF programme worth about $918 million, Ghana is expected to restore fiscal stability after falling prices for its exports of gold, cocoa and oil blemished the economy.
The Consumer Price Inflation measures the change over time in the general price levels of goods and services that households acquire for the purpose of consumption, with reference to the price level in 2012, the base year, which has an index of 100.
By Times Reporter