By Fred Yaw Sarpong
Ghana Statistical Service (GSS) has announced that inflation for June, 2013 increased marginally to 11.4% compared to 11.1% recorded in May, this year, after the rebased of the consumer price index (CPI) basket.
This means that the general price level went up by 11.4% over the one year period from June 2012 to June 2013.
The acting Government Statistician, Dr. Philomena Nyarko announced this in Accra on Wednesday 10th June, 2013.
She stated that the monthly change rate for June 2013 was 2.6%. This means that the general price level went up by 2.6% for the one month period between May 2013 and June 2013. The monthly rate for May 2013 was 2.8%.
Dr. Nyarko stated that the global food prices affected the June 2013 inflation. She indicated that there is expectation that inflation will drop come the subsequence months, especially as we entering into food harvesting season.
The year-on-year non-food inflation rate was 15.7%. The rate for May 2013 was 15.7%. The year-on-year food inflation rate was 6.3%, up from 5.8% rate recorded for May 2013. The year-on-year non-food inflation rate of 15.7% was more than two times of food inflation rate of 6.3%.
Dr. Nyarko said that the price drivers of the non-food inflation rate were housing, water, electricity, gas and other utilities; education; clothing and footwear; hotels, cafes, and restaurants; furnishing, household equipment, recreation and culture; and miscellaneous goods and services.
The price drivers for the food inflation were oil and fats; sugar, jam, honey, syrups, chocolate, confectionary; milk, cheese and eggs; coffee, tea and cocoa; mineral water, soft drinks and juices; meat; bread and cereals; fish and among others.
Greater Accra recorded the highest inflation rate of 13.3% while Brong Ahafo region had the lowest rate of 9.7%. Other regional inflation rates were Ashanti 11.2%; Volta 11.0%; Upper East and Upper West 10.9%; Central 10.3%; Eastern 10.1%; Northern 10.1%; and Western 9.8%.
The new rebased saw the increase of the number of markets covered from 40 to 42 while the items in the basket also increased from 242 to 267.
This indicates that 25 new items was added to the old basket, representing about 10.33% increased.
Some of the new items include indomie/noodles, corn dough, cerelac, beef with borns, pork, frozen chicken, grasscutter, snails, koobi, yoghurt, coconut oil, ground nut oil, and fresh coconut.
The computing of new weights for items was based on the Ghana Living Standard Survey 5 (GLSS 5) while the old weights were based on GLSS 4.
The weight of an item in the consumer basket is the proportion of household consumption expenditure on each item. These were derived from the Ghana Living Standard Survey Round 5 (GLSS 5).
The 267 goods and services in the CPI basket were also grouped according to the Classification of Individual Consumption by Purpose (COICOP) recommended by ECOWAS.