July inflation drops to 16.7%

The year-on-year inflation for the month of July dropped to 16.7% from 18.4% in June, according to the latest figures from the Ghana Statistical Service.

"The main reason why we see a drop in July is as a result of base drift and seasonality effects, influenced by the stability of the cedi and the beginning of good harvest," government statistician Philomena Nyarko said at press conference in Accra.

The year-on-year non-food inflation rate for July 2016 was 21.2% compared with the 24.1% recorded in June 2016.

The year-on-year food inflation rate for July 2016 was 8.6%, the same as the rate recorded in June 2016.

The year-on-year non-food inflation rate (21.2%) was about two and a half times that of the food inflation rate (8.6%).

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The main “price drivers” for the non-food inflation rate were Education (35.4%), Recreation and culture (28.3%), Transport (27.2%), Housing, water, electricity, gas and other fuels (25.4%), Clothing and footwear (24.3%) and Furnishings, household equipment and routine maintenance (23.0%).

The “price drivers” for the food inflation rate were Vegetables (12.0%), Oils and fats (11.7%), Mineral water, soft drinks, fruit and vegetable juices (10.9%), Coffee, tea and cocoa (10.2%), Fruits (9.7%) and Meat and meat products (9.3%).

Two regions (Greater Accra and Ashanti) recorded inflation rates higher than the national average of 16.7%.

The Greater Accra Region recorded the highest year-on-year inflation rate of 21.3%, followed by the Ashanti region with 18.0% while the Upper East Region recorded the lowest (10.7%).