Inflation rate for September 2020 drops to 10.4%

Figures from the Ghana Statistical Service (GSS) show this as the second consecutive drop in the rate of inflation since April this year

The Ghana Statistical Service (GSS) says inflation for September dropped to 10.4%. This is a marginal drop of 0.1 percentage points on the 10.5% recorded the previous month.

According to figures from the GSS, the marginal decrease in the inflation rate was influenced by a reduction in prices of certain foodstuffs.

The food and non-alcoholic beverages division recorded year-on-year inflation of 11.2%. This was 0.2 percentage points lower than in August (11.4%).

The vegetables subclass had the highest rate of inflation among foods (18.9%). This was lower than in previous months. Month-on-month inflation for food overall was -0.5% (-3.9% for vegetables).

Yet food contributed 47.6% to total inflation and thus was still the predominant driver of year-on-year inflation.

This percentage increase, however, is again lower than in the previous months and comparable to food’s contribution levels to total inflation before COVID-19.

Non-food inflation year on year came in at 9.8% and month on month at 0.1%.

The non-food subclasses with the lowest inflation were life and accident insurance (-14.4%), electricity (-35.5%) and electrical appliances for personal care (-66.4%).

Imported and local inflation

At the other end of the scale, the non-food subclasses with the highest inflation were refuse collection (49.6%), rent (40.1%) and vehicle maintenance and drivers lessons (34.1%).

Inflation for imported goods was 5.1%: the rate for local goods was 12.3% on average.

But while month-on-month inflation for imported goods increased by 0.4 percentage points, month-on-month inflation for local goods fell by 0.5 points.

The main contributor to negative local inflation was inflation of locally produced foods.

Mixed regional profile

The GSS said most regions recorded lower year-on-year inflation this month than in previous.

Year-on-year inflation ranged from 1.3% in the Upper West to 14.3% in the Greater Accra Region.

The Ashanti (11.1%), Western (10.9%) and Eastern Regions (11.9%) recorded year-on-year inflation above the national average of 10.4%, while Upper West had the lowest rate.

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