Ghana: Inflation quickens as utility tariffs rise


Ghana’s statistics office says the annual inflation rose to 9.4% from 9.1% in June 2019.

The Deputy Government Statistician, David Kombat told reporters Wednesday in the capital, Accra that Power tariffs rose by 11.2% last month and water prices by 8%.

The central bank left its key interest rate at 16% last month even as Governor Ernest Addison cited a downward trend in underlying inflation and downside risks to the economic growth outlook due to weak business sentiment.

“The statistics office still uses the old base year of 2012 and once it starts using the 2017 base for the index, that could change the inflation number

 Despite the pick-up, inflation remains inside the Bank of Ghana’s target band of 6% to 10% and there may still be room to loosen policy further in the second half of the year,” he explained.

Peace PIAK