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Government misses end of year inflation target

Jan. 11, 2018, 9:45 a.m.

Government has missed its inflation target for the year 2017.

The figure which was projected at 11.2 percent ended at 11.8 percent for the year 2017.

This, however, represents a 0.1 percent increase compared to the 11.7 percent recorded in November last year.

Inflation measures the average change over time in the prices of goods and services.

Acting Government Statistician Mr Baah Wadieh explained that the rise in prices of non- food items such as transport and clothing contributed to the rise.

“In December 2017, the year on year inflation rate was 1.8 percent as compared with a rate of 11.7 percent recorded in November 2017, the monthly change rate in November 2017 was 1.0 percent compared with a rate of 0.9 percent for November 2017”, he said.

Mr Wadieh explained that the prices of non-food items are easily affected by price changes, as well as fuel.

“The non-food items like clothing and footwear, transport, recreation and culture as well as furnishing, household and equipment which easily respond to things like adjustment in fuel prices and government policies were the main drivers for the rise in inflation,” he said. 

Meanwhile, at the regional level, the year on year inflation rate ranged from 10.2 percent in Upper East region to 12.8 percent in Upper West region.

Upper West, Greater Accra, Brong Ahafo and Ashanti Regions recorded inflation rates higher than the national average of 11.8 percent, whiles Upper East region recorded the lowest inflation rate of 10.2 percent.

Before the announcement, economist, Dr Eric Osei-Assibey predicted a marginal increase in the inflation figure for December 2017.

According to him, the high demand for some goods and services in December was the main reason.

Figures from the GSS indicate that inflation has been on the decline since September 2016.

The figure has fallen from 17.2 percent in September 2016 to 12.8 percent in March 2017 and 11.7 percent as at November 2017.