Data released by the Ghana Statistical Service (GSS) on Wednesday revealed that the nation’s inflation rate for April rose marginally to 9.5% from 9.3% recorded in March. This figure indicates a 0.2% increase from the previous figure.
According to the statistics bureau, the marginal rise is due to the increase in electricity tariffs around this time last year. And also the price increases in food and non-food items.
From to the statistics released on the agency’s website, the year-on-year inflation rate comparison, as measured by the Consumer Price Index (CPI), dropped from 9.6% recorded in April 2018 to 9.5% in April 2019. This rate of inflation for April 2019 is the percentage change in the Consumer Price Index (CPI) over the twelve-month period, from April 2018 to April 2019.
See Also: Inflation news for Nigeria.
Inflation Rate Records By Region.
Speaking at a conference in Accra, Deputy Government Statistician David Kombat said, “In April 2019, the year-on-year inflation was 9.5 percent compared with the rate of 9.3% recorded in March 2019. The monthly change rate in April 2019 was 1.1% lower compared with a rate of 1.2% recorded from the month of March 2019.” He, however, stated that three regions (Brong Ahafo, Western and Upper West Regions) recorded inflation rates above the national average, while the Upper East recorded the lowest rate of inflation.
Food And Non-Food Inflations.
David Kombat noted that the year-on-year non-food inflation rate for April 2019 was 10.4% compared to the 9.7% recorded for March 2019. He further indicated that the year-on-year inflation rate for April 2019 was 7.3% for food compared with a rate of 8.4% recorded for the month of March 2019.
This subgroup of coffee, tea and cocoa (13.7%), mineral water, soft drinks, fruit and vegetable juices (9.5%), meat and meat products (8.3.1%), fruits (10.4%), and vegetables (7.5%), etc. recorded the highest rate than the group’s average. Transport (13.2%), furnishing, household equipment and routine maintenance (12.8%), clothing and footwear (14.3%), recreation and culture (14.1%), and miscellaneous goods and services (10.0%) all had the highest rates in the non-food subgroup. Health (5.9%) recorded the lowest figure in the non-food subgroup.
Is Ghana’s Economy At Risk With This Rise?
According to economists, a steady inflation rate between 2% and 3% is necessary to achieve a stable economy. A high inflation rate can be triggered by excessive money supply and can result in hyperinflation which, if it occurs too rapidly, can cause currency devaluation, recession and even economic collapse.
The economy of Ghana is considered quite stable and fast-growing, according to the IMF, and it is rich in natural minerals such as gold, diamond, and oil.
The economy sputtered in 2015 due to increased government spending and dipping oil prices, but it is now picking up again. However, government debt is still besieged by the aftermaths of the 2015 crisis and the prediction is that it will keep shooting up through the next few years.
