Consumer prices have stabilized in first three months of the year after inflation rate for March remained unchanged at 7.8%. The current rate represents a 150 basis point (bps) drop from a reported rate of 9.3% over the same period last year.
According Ghana Statistical Service (GSS), Ghana has seen a continued increase in the prices of locally procured goods compared to imported goods. Whilst inflation on imported goods inched lower from 5.9% reported in February to 5.6%, that of local goods climbed to 8.8% from 8.6% recorded in February.
The Food and non-alcoholic beverages group which was the single largest contributor to month-on-month inflation recorded a year-on-year inflation rate of 8.4%, up from 7.9% recorded in February. Eight subgroup items including ‘cocoa drinks’ at 14.1% recorded rates above the group’s inflation rate whilst seven other subgroup items including ‘water’ at 0.9% recorded rates below the group’s average.
The inflation rate for the Non-food and alcoholic beverages category recorded its third consecutive decline in March. It tumbled from 7.7% in February to 7.4% in March. ‘Alcoholic beverages & other narcotics’ stayed high at 11.4%, as the contribution of transport to consumer price readings continue to record a decline. ‘Insurance and financial services’ at 0.1% were among eight others that recorded rates below the group’s inflation figure.
At the regional level, Volta region recorded the highest inflation with a rate of 9.2% while the Upper West region recorded the lowest at a rate of 3.7%.
At the last Monetary Policy Committee (MPC) meeting, the committee eased the policy rate by 150 bps from 16.0% to 14.5% in an attempt to stimulate the economy and reduce the adverse economic impact of the spreading coronavirus.
