Government has missed out on its end of year inflation target for last year. According to figures released by the Statistical Service on Wednesday, the country recorded a 13.5 percent inflation rate for December 2013, up from 13. 2 recorded in November.

This is the second time since 2012 that government has missed out on keeping the general price levels of goods within a certain band.

Government statistician Dr Philomena Nyarko explains to Joy Business what accounted for this:

“As you all know the cost of goods and services is affected by so many factors: it could be government policies, external factors, exchange rates and so on, anything can happen.”

 She however maintained outlook for inflation is favorable.

“We all know that there have been a number of decisions that have been taken as far as financial management is concerned. We are looking at freezing wages; also the government is trying to use the GIFMIS system [the  Ghana Integrated Management Information System] to regulate the way government expenditure is carried out.... some new tax regulations being put in place.

“We have to wait to see what the impact of some of these policies would be."

The 13.5 percent inflation rate is the highest in three years.

Meanwhile, the Statistical service is attributing the marginal increase in inflation rate for December last year to hikes in petroleum prices, transport fares  and Utility tariffs .