The rate of inflation for August was reported at 7.8% after the Ghana Statistical Services (GSS) rebased the consumer price index using 2018 as the reference period while expanding the inflation basket from 267 items to 307 items. A statement from the GSS noted that the move was a part of the institution’s continuous commitment to improving on the quality of its services. The new series for computing the consumer price index further took into account changes in the consumption pattern over time.
The Food and non-alcoholic beverages group recorded a year-on-year inflation rate of 8.2%. The major price drivers for this category were ‘fruits & nuts’ and ‘cereals & cereal products’ which recorded rates of 25.2% and 10.6% respectively. Five sub-groups including ‘fish & other seafood’ at 6.3% recorded rates below the group’s inflation rate.
The inflation rate for the Non-food and alcoholic group came in at 7.4%. ‘Alcoholic beverages & other narcotics’, ‘transport’, and ‘housing & other utilities’ at 12.9%, 10.2%, and 9.9% respectively recorded rates above the group’s inflation rate. Seven subgroups including ‘insurance & financial services’ at 0.3% and ‘information & communication’ at 2.0% recorded rates below the group’s inflation rate.
At the regional level, the Greater Accra region recorded the highest inflation with a rate of 12.4% while Eastern region recorded the lowest at a rate of 3.9%.
It remains unclear how the impact of the rebasing will affect the policy rate going forward, however, analysts argue that due to the slow pace of the fiscal consolidation process, the Monetary Policy Committee (MPC) will be expected to put on hold its policy easing cycle.
