The rate of inflation edged up marginally for the first time after the rebase of the consumer price index. Inflation rate for October was reported at 7.7%, up from 7.6% predominantly driven by food and transport cost, even though the contribution of food on the consumer price index went down. Despite the marginal rise, the inflation rate remains on track to stay within the government’s end of year target of 8.0%.
According to the Ghana Statistical Service (GSS), inflation on imported goods came in at 8.9%, while that on local goods was reported at 5.9% on average. The GSS further noted that, compared to previous months, transport is now a leading driver of inflation mainly on the back of increased prices in both bus fares and petroleum products.
The Food and non-alcoholic beverages group recorded a year-on-year inflation rate of 7.0%, down from 8.5% in September. The key driver for the decline according to the GSS came on the heels of a decline in the price levels of vegetables and fruits.
The inflation rate for the Non-food and alcoholic category rose from 7.4% in September to 8.2% in October. ‘Alcoholic beverages & other narcotics’ and ‘transport’ at 13.2% and 12.9% respectively recorded rates above the group’s inflation rate. Insurance and financial services at 0.9% were among 7 others that recorded rates below the group’s inflation rate.
At the regional level, the Greater Accra region recorded the highest inflation with a rate of 11.8% while the Upper East region recorded the lowest at a rate of 3.6%.
Ahead of a Monetary Policy Committee (MPC) meeting later in the month, it is expected the MPC will continue to act cautiously in the announcement of the policy rate as the country gears up for an election year with much uncertainties.