The upward review of the inflation rate for the economy comes as no surprise to policy analyst of the Integrated Social Development Centre (ISODEC), Mr Dennis Nchor who says it was expected.
Mr Nchor who is also the Head of Budget at ISODEC told the GRAPHIC BUSINESS that it was expected considering the impact of the recent hikes in petroleum prices.
“It is largely due to the effect of the fuel price increment but it was expected,” he said.
He said this after the release of the inflation rate for March 2013 by the Ghana Statistical Service (GSS), the national statistical data computing body for the country.
Inflation for March 2013 went up by 0.4 percentage points from 10 per cent recorded in February 2013 to settle at 10.4 per cent, the highest rate of inflation since June 2010.
The monthly change rate however recorded a decline from 2.6 per cent in February to 1.7 per cent in March 2013.
Inflation rate which is measured by the Consumer Price Index (CPI) looks at the change over time in the general price level of goods and services that households acquire for the purpose of consumption.
The increase according to acting Government Statistician, Dr Philomena Nyarko was as a result of positive pressure from both the food and non food components of the rate.
The year-on-year non-food inflation rate was 13.2 per cent compared to12.6 per cent recorded in February 2013 while the year-on-year food inflation rate was 5.5 per cent, up from 5.3 per cent rate recorded for February 2013.
Mr Nchor however explains that the surprise was that the Greater Accra region recorded the highest year-on- year inflation rate in March adding “it is however explained by the influence of the transport sector.”
On the regional level, Greater Accra recorded the highest year-on-year inflation rate of 12.2 per cent, followed by Ashanti Region with 11.2 per cent while the Western Region recorded the least rate of 8.2 per cent.
Looking ahead, Mr Nchor explained that although achieving single digit inflation was still possible it requires some level of fiscal tightening.
“If the proposed removal of subsidies and increment in utilities tariffs are implemented then inflation will further increase,” he told the GRAPHIC BUSINESS.
Meanwhile, according to the 2012 revised Gross Domestic Product (GDP), the services Sector remained dominant contributing about 50 per cent to the total value of goods and services produced in the country, followed by industry with 27.3 per cent while the former largest contributor, the agricultural sector lagged behind with a 22.7 per cent contribution.
Again, the services sector recorded the highest growth of 10.2 per cent, followed by Industry with 7.0 per cent with agriculture recording the lowest growth of 1.3 per cent.
Data released by the GSS however indicate that the total value of goods and services produced in the country in 2012 stood at GH¢73.1 billion while the rate at which the economy grew also pegged at 7.9 per cent above the projected 7.1 per cent in September last year.GB
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