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August inflation rate falls to 10.5 per cent

The year-on-year inflation rate fell to 10.5 per cent in August, a 0.9 percentage points lower than 11.4 per cent recorded in July 2020.

The monthly change rate for August 2020 is -0.4.

“Total month-on-month inflation is negative because it is pulled down by negative food inflation (-1.1 per cent) and negative inflation for the Recreation, Sport and Culture Division (-1.4 per cent),” Government Statistician Professor Samuel Annim announced this at a press briefing in Accra.   

He said the monthly change rate for August stood in contrast to the average 0.9 per cent month-on-month inflation that was recorded during the months April to July 2020 and the average month-on-month inflation rate of 0.7 per cent that was recorded in the six months prior to COVID-19.”

According to Professor Annim, the reduction in the inflation rate also meant that the country’s currency had witnessed some stability, a situation which provides confidence in the business community especially and investors.

He explained that “This brings to mind a sense of stability in the currency which we all are looking for as a country and this what investors will need in having that certainty on what is going to happen to their investment.”

“Having beginning to see a reversal to period’s pre- COVID-19 suggests that there is some certainty with our business engagements,” he said.

The food and non-alcoholic beverages recorded a year-on-year inflation rate of 11.4 per cent for August, representing a 2.3 per cent drop from 13.7 per cent for July 2020.

Two subgroups recorded inflation rates higher than the group’s average rate of 13.7 per cent.

These are vegetables with 21.3 per cent, fish and other seafood 14.3 per cent.

This translates to Food being the predominant driver of year-on-year inflation in August.

The Non-Food group recorded a year-on-year inflation rate of 9.9 per cent in August.

 The Non-Food inflation for August was 0.2 percentage point higher than the 9.7 per cent recorded for July 2020.

The inflation of imported goods was 4.8 per cent, while that of local goods stood at 12.6 per cent on average.

At the regional level, the year-on-year inflation rate ranged from 4.7 per cent in the Volta Region to 13.5 per cent in the Greater Accra Region.

Ashanti 11.2 per cent, Western Region 11.6 per cent and Eastern 11.9 per cent recorded inflation rates above the national average of 10.5 per cent.  Volta Region had the lowest year-on-year inflation rate of 4.7 per cent.

BY FRANCIS NTOW

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