Ghana’s downward trend of inflation rate may halt in January 2011

Ghana’s inflation rate has been sliding down significantly in the last 18 months but Mr. Ebo Duncan, Head of Statistics at the Ghana Statistical Service (GSS) has said this phenomenon may come to a halt following the hikes in fuel prices announced by the National Petroleum Authority (NPA) early January.

Asked whether the downward trend in inflation rate will come to a halt from the beginning of the year, he said it might happen looking at what transpired during January 2010 when inflation was higher than the previous months. He however added, that it depends on how the increase in fuel prices will affect inflation rate since it has an influence in the distribution chain.

Mr Duncan disclosed this at a press conference to announce the December 2010 inflation rate.

“From the fuel prices increase that we have seen over the period, we always see that whenever there is fuel price hikes then inflation rate increases,” he said.

“But you have about 80% to 90% chance that inflation will go up but you can also not rule out that it might come down,” he added.

Ghana’s inflation for the month of December 2010 dropped to 8.58%. The country’s inflation rate at 8.58% becomes the lowest since 1992.

In November 2010, the inflation rate fell to 9.8%.

By Ekow Quandzie
ghanabusinessnews.com