Inflationary pressures return
Latest figures from the Ghana Statistical Service indicate inflationary pressures have resumed after a 19-month break, which saw the inflation rate drop from a peak of 20.7% in June 2009 to 8.5% in December 2010. Month-on-month inflation for February 2011 edged up 0.08% to 9.16% due to increases in the non-food inflation. Government statistician Grace Bediako, said non-food group items, led by transport, alcoholic beverages, housing, water and electricity recorded higher rates than the national average. The rise in inflation follows a 30% hike in petrol prices in January.
"While the Consumer Price Index (CPI) still appears well-contained, there is still little immediate need for a rate hike," said Standard Bank analyst Razia Khan.
"But with global oil prices rising further, and Ghana's January domestic fuel adjustment rising only enough to compensate for a rise in global prices to US$93/bbl from US$75/bbl previously, it is clear that the pressure will persist," she added.