Inflation rate for the month of January declined marginally. It dropped to 7.8 per cent. 

The development should mean that even though inflation was increasing last month, the rate of increase in January was a little slower, compared to December 2019. 

According to the Government Statistician, Profession Samuel Kobina Anim, “the national year-on-year rate was 7.8 per cent in January 2019, 1.9 percentage points lower than the 7.9 per cent recorded in December 2019.”

He also explained that Alcoholic Beverages, Tobacco and Narcotics (11.1 per cent), Transport (10.5 per cent) and Recreation (9 per cent) were the divisions with the highest rates of inflation.

The food and non-alcoholic beverages recorded a year-on-year inflation rate of 7.8 per cent, representing a 0.5 percentage points higher than what was recorded in December 2019 (7.3 per cent).

At the regional level, the year-on-year inflation ranged from 5.6 per cent in the Ashanti Region to 10 per cent in the Central Region.

Inflation is a key determinant of interest rate, both fixed income and lending rates. Ghana’s December 2019 inflation rate of 7.9% – a measure the Vice President, Dr Mahamudu Bawumia has described as “the lowest since 1992”.

Speaking at the Government’s Town Hall Meeting in Kumasi, Dr Bawumia said: “Inflation has dropped steadily from a high of 15.4% at the end of 2016 to 7.9% at the end of December 2019, which is about the lowest since 1992.”