Ghana’s rate of inflation for December 2012 dipped at 8.8 per cent, down from 9.3 per cent recorded in November.
The figure is just slightly higher than government’s projected 8.5 per cent, the Acting Government Statistician, Philomena Nyarko, announced in Accra on Wednesday.
“We think that it is the stability in the exchange rate. We didn’t see any changes in petroleum prices and utility prices. Usually those are the things that really account for the change because they reflect in transportation and so on and so forth,” she said
On regional basis, Greater Accra Region recorded the highest inflation figure of 11.2 per cent.
Meanwhile, the Ministry of Finance and Economic Planning said the December 2012 inflation rate of 8.8 per cent did not only show a drop for three consecutive months (October to December) but also marked 31 consecutive months of single digit inflation in the country.
“This development is in clear contrast to the belief of some commentators who were less optimistic and predicted that inflation was likely to return to the double-digit zone by the end of the year at the back of higher petrol and electricity tariff increases, a weaker domestic currency, and higher food prices,” it said in a statement.
The statement said inflation had stabilized in single-digit due to the “prudent fiscal policy of the government and continued monetary restraint” which helped to anchor inflationary expectations and partly to lower food prices which placed a lid on headline inflation.
“The decline in inflation provides concrete evidence of an economy that is growing at a fast rate. Indeed, the declining inflation has created conducive environment for businesses to plan on long term basis, thereby enhancing business investment, which has helped put the economy on a higher growth path,” the Ministry said.
It noted that the medium to long term outlook for inflation is more promising. It said with a strong economic growth forecast, tight fiscal stance, current levels of interest rates and greater exchange rate stability, the government expected inflationary pressures to remain moderate and inflation to drop to 5 per cent in the medium term.