Skip to main content

Communications sector contributes little to inflation

By Fred Sarpong

Despite its contribution to the Consumer Price Index (CPI) is significantly low, the communications sector is one of the very important sectors to Ghana’s economy.
For some years now the communications sector contribution to Ghana’s inflation has remain the same.
As part of the non-food items in the CPI basket, the communications national weight has consistently be 0.31%, of the total non-food national weight of 55.09%.
In the month January 2013 inflation, the communications sector contributed a year-on-year rate of 0.4% to the non-food sub-sector. But its contribution to January 2013 inflation was 0.0%. This was the same in December, 2012.
According to the Ghana Statistical Service (GSS), the price level of communications services such as telephone charges (with a weight of 90%), EMS charges (5% weight) and standard postage (5% weight) in CPI basket, has remained largely unchanged over some years.
The regional contribution of the communications sector to the national weight is very low. Looking at the December 2012 and January 2013, Western Region contribution has been 0.02%, Central 0.00%, Greater Accra 0.10%, Eastern 0.01%, and Volta 0.03%.
The rest are Ashanti 0.11%, Brong Ahafo 0.02%, Northern Region 0.01% and Upper East and Upper West both had 0.00%.
Magnus Ebo Duncan is the Head of Nation Account at GSS, he told Business Week in Accra last week that communications is one of the special sectors to the contribution of consumer price index. However, call rate especial remains very low and there are stability in some of this communication items such as news papers and stamps the prices have remain stable for a long time.
‘Because of these items have remained stable for a long time that is why we see the low performance of the communications sector contribution to inflation,’ said Duncan.
According to him even though we know call rates are the same throughout, but some use of other communication and services prices differ in some regions of Ghana. ‘Example is space-to-space, which is mainly common in rural areas,’ he added.
He stated that the CPI basket will be review in middle of March this year and communications contribution to the basket may change. ‘This is because it will be using almost the same items, except that the use of internet will be added to the new communications sector,’ Duncan said.
The Ghana’s telecom for some times now has seen competition among the industry players, especially on price level. The operators are MTN, Vodafone, Tigo, Airtel, Glo and Expresso. But their data charges are competitive.
During the 2012 third quarter gross domestic product (GDP) announced by GSS, the main contributors to the services sector were Hotel and Restaurants 31.8%, Financial andInsurance activities 22.6%, and Business, Real Estate and Other business activities 15.3%.  However, Transport and Storage, and, Information and Communication subsectors contributed negatively to the growth of the services sector.


Popular posts from this blog

PIAC told to go to court to enforce recommendations

By: Fred Yaw Sarpong

The Public Interest and Accountability Committee (PIAC), the mandated body to monitor the use of Ghana’s oil revenues has been asked to go to court to seek strict compliance of the laws covering accountability of oil funds in the country.

According to Dr. Steve Manteaw, the Campaign Coordinator for ISODEC and a member of the PIAC , it’s time for PIAC as a body to consider going to court to compel institutions responsible for managing Ghana’s oil revenue to answers some questions concerning the expenditure of oil funds.

He pointed out that there are several recommendations made by the PIAC in its past reports on management of petroleum revenues, and a lot of these recommendations has received no positive response from the institutions concerned.

He disclosed this to the Daily Express at a three-day workshop on Interrogating the 2016 Semi Annual PIAC Report at Koforidua in the Eastern Region.

The workshop was organized by the Institute of Financ…

Deputy AG sues Facebooker over 'malicious' Ameri deal

The Deputy Attorney-General and Member of Parliament for Bolgatanga East, Mr Dominic Ayine has filed a defamation suit at an Accra High Court against a Facebook commentator, Evron Hughes.
In Mr Ayine’s statement of claim, sighted by Graphic Online, he accused Mr Hughes of defaming him in a post he authored and published on Facebook on December 21, 2015, titled “RE: AMERI TRANSACTION”.
According to the Deputy A-G, the “false and malicious” post has provoked “public disaffection” against him and exposed him to public ridicule and contempt.
Describing Mr Hughes as a “self-styled social media blogger and a social commentator”, Mr Ayine said the Facebook post had brought his hard-won reputation “as a respected politician, teacher and lawyer” into “hatred, ridicule, odium, discredit, contempt, opprobrium and reproach”.
The Deputy A-G said the “defamatory words” were authored with the sole intent to reduce him in the estimation of all right thinking Ghanaians, adding that he had received numerou…

BoG shuts down two financial institutions

The Bank of Ghana has closed down two financial institutions in the country. This was after the central bank investigation revealed that the two companies were operating without approval.

The two companies were Agro Development Fund Services Limited (ADFSL) and Hebron Financial Investment Limited (HFIL).

The Daily Express gathered that the ADFSL was asked to stop operating after the central bank realized the institution had not been licensed to take deposit from the public.

A statement from BoG said the ADFSL continued to operate despite the orders from the Bank of Ghana. It however closed down ADFSL’s operation until further notice.

The Bank of Ghana said that the ADFSL is located at Asufufu, opposite the Sunyani Traditional Council in the Brong Ahafo region.

“The decision to close down ADFSL is in furtherance of section 20(2) (g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Bank of Ghana has investigated ADFSL thoroughly and has concluded that its a…