Ghana inflation rises to 12.3 pct in August

9/13/2017 8:00:12 PM

Increase from 11.9% in July 2017. 

Ghana’s annual consumer price inflation rose to 12.3 percent in August from 11.9 percent in July, the statistics office said on Wednesday.

The major commodity exporter is following a $918 million credit programme with the International Monetary Fund to restore fiscal balance with an inflation target of 8 percent in 2018, plus or minus 2 percentage points.

The August rise was the highest since May 2017, when inflation was at 12.6 percent, acting government statistician Baah Wadieh told a news conference in Accra.

Unusually low prices in the same period last year were a factor.

“We observed that there were marginal increases in petroleum prices. There were also some new taxes but the key driver was the base drift effect compared to the index a year ago,” Wadieh said.

Analysts say despite the uptick in the August rate, they expect the central bank to lower its policy rate at its next meeting on Sept 25.

“It does not alter our expectation of further (rate) easing from the Bank of Ghana,” said Standard Chartered Bank chief economist Razia Khan.

Food inflation rose to 7.4 percent in August from 7.2 percent the month before while non-food inflation rose to 14.7 percent from 14.2 percent.

Source: Reuters 

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