The year-on-year rate of inflation climbed to a 4-month high in November at 8.2% from 7.7% recorded in October, 2019. This is the second rise after the consumer price index was rebased in August, 2019 using 2018 as the base year. Despite the rise, the inflation rate remains well anchored within the Bank of Ghana (BoG) medium-term inflation target band of 8.0% ± 2.0%. Month-on-month, inflation between October and November, 2019 came in at 0.7%.
According to the Ghana Statistical Service (GSS), inflation on imported goods dipped from 8.3% in October to 7.5% in November, while that on local goods rose from 7.5% to 8.4% within the same period. The GSS further indicated that food and non-alcoholic beverages are the main drivers of inflation after posting a significant increase. Housing persisted as the more important driver of inflation whilst transport remained as the less important driver of inflation.
The Food and non-alcoholic beverages group recorded a year-on-year inflation rate of 8.4%, up from 7.0% in October after ‘vegetables’ recorded the biggest month-on-month rise. Six subgroup items including ‘fruits and nuts’ at 17.1 recorded rates above the group’s inflation rate while nine subgroup items including ‘tea and plant products’ at -2.2% recorded rates below the group’s rate.
The inflation rate for the Non-food and alcoholic category declined marginally to 8.0% in November from 8.2% recorded in October. ‘Alcoholic beverages & other narcotics’ and ‘transport’ at 13.4% and 12.3% respectively recorded rates above the group’s inflation rate. ‘Insurance and financial services’ at 0.9% were among eight 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 12.8% while the Upper East region recorded the lowest at a rate of 3.5%.
The Monetary Policy Committee (MPC) of the BoG as expected stalled the last monetary policy rate at 16.0% for the fourth consecutive as risks to the disinflationary path persisted buoyed by the slow pace of the fiscal consolidation process coupled with a sustained depreciation of the Cedi. It is expected the MPC will continue to put on hold its policy easing cycle in 2020.
