Headline inflation for October 2020, reached 10.1 per cent, a reduction of 0.3 per cent from the previous 10.4 per cent recorded in September this year.
This, is according to the Ghana Statistical Service (GSS).
Government Statistician, Professor Samuel Kobina Annim, has attributed the marginal fall in the rate to a decline non-food inflation for the period under review.
Figures released by GSS indicate that month-on-month inflation from September 2020 to October 2020 was estimated at 0.2%.
Food and Non-Alcoholic Beverages inflation was however 12.6% and average Non-Food inflation was 8.3%.
Food contributed 54.7% to the total inflation and thus is still the predominant driver of year-on-year inflation.
Within the Food Division, Vegetables (24.9%) was the subclass with the highest rates of inflation. This high inflation for vegetables is explained by the relatively low index for vegetables back in October 2019.
In contrast to Food inflation, Non-Food inflation decreased.
Year-on-year Non-Food inflation came in at 8.3%, the lowest rate since April 2020.
Three divisions recorded a higher month-on-month inflation between September and October 2020 than on average was recorded for these Divisions in the months before the COVID-19 pandemic.
They are Housing, Water, Electricity and Gas (20.2%).
For Imported and Local Inflation, the inflation of imported goods was 5.1%, while the inflation of local goods was 12.2% on average.
Month-on-month inflation for imported goods was 0.8%, while month-on-month inflation for local goods was 0.1%.
The Greater Accra region recorded the highest inflation rate of 15.2%, whilst the Upper West region registered the lowest inflation rate of 1.6%.
With a fall in the inflation rate, it is expected that there will be a possible reduction in the Bank of Ghana’s prime rate as it’s Monetary Policy Committee (MPC) begins its sitting next week to come out with a new policy rate.
