Inflation goes up

Story: Boahene Asamoah

The annualised rate of inflation for the month of February has hit 13.2 per cent sending strong signals to economic watchers as to whether a single digit inflation would remain elusive to the country.
This is the fourth consecutive time inflation rate has urged up, having increased consistently from 10.14 per cent in October 2007 to 11.40 per cent in November, to 12.75 in December to 12.81 in January and then to 13.2 per cent.
What is worrying is that the food component of the consumer price index seems to have contributed to the increase in the inflation figure for February.
Although it was anticipated that food prices could increase as a result of the floods that hit the three northern regions which happens to be the food basket of the country and the cyclical nature of food prices during this period of the year.
The last previous upward movement in the inflation rate has by and large been attributed to the increase in the non-food component especially the upward increase in fuel prices in November and the higher spending patterns of the consumers during the yuletide in December.
Ghana has struggled to achieve a single digit inflation. In 1999 a nine per cent inflation rate was achieved, whiles in 2006, inflation inched closer to the single digit inflation.
The 2007 year started with inflation rate of 10.89 per cent in January and fell to 10.42 and 10.19 per cent in February and March respectively.
However, inflation rose again in April to 10.50 and 11.02 per cent May as a results of insufficient supply of staples such as maize, yam, cassava and plantain.
The February 2008 inflation increase was also due to high prices of some basic foodstuffs such as fish, bread and cereals were the major cause of the upward surge in inflation.
Considering the anticipated fuel price increases for this month as a result of the continous crude oil prices on the world market, the outlook of the economy look quiet uncertain.
The cyclical nature of the food prices normally would have started in March, but because of the floods this year’s food component impact on the CPI seemed to have started quiet early.
Again the rains seems to have delayed slightly which could
Last June for instance, the inflation rate declined which is the
The weakening of the currency especially against the United States dollar is also a source of great concern to economy.
The outlook of the economy seemed unbalanced although there has been some improvements such as the non-traditional exports hitting an all-time record of $1 billion at the end of the year, and also gold and cocoa prices hitting near records.
However, the continuous increase in crude oil prices coupled with