Inflation rate continues its downward trend with a 13th month consecutive decline from 9.52 percent in June to 9.46 percent in July.
Though the tariff increase in June caused the inflation rate in the utility group to rise, this did not significantly affect the overall inflation rate due to the relatively small rate of utilities in the consumer basket.
In July, the Food and non alcoholic beverages group also continued it’s a single digit inflation trend whilst the Non Food group though also declined continued to record a double digit inflation rate of 11.96 percent in July.
Though the 9.46 inflation rate recorded in July is the lowest so far since 2002 when the base year was reviewed, it represents a marginal decline of 0.06 percentage points compared with that of June.
Speaking to CITI BUSINESS, Government Statistician Dr. Grace Bediako said this is however no indication of an end to the downward trend in inflation.
“As price changes go, there are times when you will have very slight movements in the general price level because there are so many opposing changes.
It doesn’t mean that we are seeing the end to this because we are also moving into a period where the month to month inflation tends to go down so this is just about the month we see it.
So we have to wait till August to see what happens. It is not a sign that it is slowing down. Some months changes have been slight even when inflation is high.”
On regional basis, the Northern Region has for the first time in several months been dislodged by the central region which recorded the lowest rate of 5.5 percent whilst Greater Accra remains the highest.”
Government Statistician Dr. Grace Bediako told CITI BUSINESS the major underlying factor to this development is food prices.
“We saw that in Greater Accra, food prices seem to have been a big factor in the inflation and it was same for the Central Region.
It seems to be linked to food prices for some reason. We would have to look deeply into it to see which components but there are items that would have contributed to the two regions.” She said.