Source: newsthemegh.com
According to the Economist Intelligence Unit (EIU), Ghana’s inflation rate would reach 38.1% by the end of 2023.
According to the London-based company’s most recent study, domestic price pressures would increase as a result of increased levies, including a rise in the Value Added Tax (VAT) rate and excise duties, as well as pass-through impacts of continued depreciation.
“Despite a slowing in monthly inflation for the most of the period—inflation having declined to a (still extremely high) annualized 45% in March from 52.8% in February [2023]—we project inflation to grow further on average in 2023, to 38.1%.
But according to the EIU, between 2024 and 2027, inflation will only average 10.9% per year, or the lower end of the Bank of Ghana’s target range of 6 to 10%.
In light of the falling global commodity prices, this will represent fading supply-side price pressures.
A few weeks ago, the Ghana Statistical Service announced that the annual inflation rate for March 2023 was 45.0%.
On April 12, 2023, a press conference in Accra made this announcement.
This indicates that the general price level was 45.0% higher in March 2023 than it was in March 2022.
Between February 2023 and March 2023, monthly inflation was -1.2%.
Using the linked series, the Consumer Price Inflation for March 2023 was 166.6 compared to 114.9 for March 2022.
CPI definition, calculation, and inflation rate:
The CPI tracks variations in the cost of a set basket of goods and services that households typically buy.
The basket is assumed to be bought on a monthly basis, which would account for price variations.
The CPI’s relative change over time, or “rate of inflation,” Inflation data is given on a yearly and monthly basis, and is then broken down to identify the region, commodity, and source of the inflation.
CPI doesn’t track changes in prices.
The Consumer Price Index Manual: Concepts and Methods serves as the foundation for both the CPI and inflation measures. Market readings are recorded as data each month.
Prices, item quantities, and expenditure weights are important variables. The new series’ price reference year is 2021 (2021 = 100).
Every month, prices for 47,877 products in 16 regions are gathered.
In 57 markets, price collection is carried out. Prices were gathered from 8,337 different retailers.
Thirteen Divisions, 44 Groups, 98 Classes, 156 Subclasses, and 307 Items make up the hierarchy in which products are arranged.
Every item is only capable of belonging to one Subclass, and each Subclass is only capable of belonging to one Class, etc.
Breakdown of the inflation rate in March 2023:
Food inflation was 50.8% (0.437).
Food inflation last month was 59.1%.
Food inflation from month to month was 0.9%.
Non-food inflation was 40.6% (0.563).
Non-Food inflation last month was 47.9%.
▪Month-on-month Inflation outside of food was -1.5%.
For goods made in the area, inflation was 41.9%.
The rate of inflation for imports was 51.6%.