Inflation declines marginally in June

Inflation for the month of June has recorded another marginal decline. It stood at 8.5 percent down from the May figure of 8.9 percent.

It represents the inflationary trend from June last year to June this year.

The Statistical Service attributes the decline to a drop in the price levels of food stuffs.

Compared to last month however, general price levels went up marginally.

Government Statistician, Dr. Grace Bediako explains to Joy Business what is accounting for these changes.

“The month-on-month is really the mediate experience in price levels so it shows the inflation within a short period of time.

"And here a lot depends on the seasons-what is changing- because May has a different set of characteristics when it comes to food production, harvest and the like, than June. That is why we have different patterns in the month-to-month from the year-on-year.

"So it is a lot more complicated than just price levels increasing immediately and then we see a change,” she added.

The Greater Accra region still has the highest inflation at 12.4 percent whilst the Volta Region at 4.6 percent had the lowest.


Source: Joy Business/Myjoyonline.com/Ghana ownside risks connected with oil imports,” he said.

Bank of Ghana’s composite index of economic activity showed a year-and-year growth of 26.5 per cent and 19.4 per cent in April and May respectively compared to real growth of 23.7 per cent in the first quarter of 2011.

A survey of consumer and business sentiments conducted in June this year, showed softening sentiments on growth.

The overall business confidence index fell to 104.1 in June from 106.6 in April, with firms less optimistic about the level and intensity of their capital expenditures and expectations of lower sales, profits and employment opportunities.

On the other hand, the consumer confidence index declined from 100.7 in April to 99.5 in June, driven by weaker welfare expectations.

Ghana, which joined the ranks of oil exporting nations in December, last year, remained exposed to the world price of oil for its own energy imports. However, Amissah-Arthur said he expected future market price moves to be “within tolerable limits.”

The US$46-billion-a-year Ghanaian economy is set to see one of the world’s fastest growth rates this year, partly fuelled by oil. Growth in the first quarter leaped to an annual rate of 23 per cent.

However, Amissah-Arthur noted that official surveys on both business and consumer confidence eased in June and added that despite a pick-up in private sector credit, the Bank was still concerned at what he called the “sluggish” response of commercial banks in cutting lending rates.



Source: Daily Graphic/Ghana