SIC Brokerage has stated that the outlook for inflation for the remaining months of the year remains negative.
The brokerage firm, according to norvan reports said inflation rate was expected to inch higher on a number of factors such as higher import inflation as the Cedi depreciates against the major trading currencies such as the dollar going into the Christmas festivities.
The brokerage firm, in its inflation report said “Our outlook for inflation remains negative. We expect inflation for imported goods to edge higher in the coming month and towards end of 2021 as the Ghana Cedi depreciates against major trading currencies. With the festive season fast approaching, we expect this trend to continue.”
The Year-on-Year inflation rate as measured by Consumer Price Index was 9.7 percent in August 2021, a rise compared to the 9.0 percent recorded in July 2021, representing a Month-on-Month inflation increase of 0.3 per cent.
Despite the increase in the headline inflation to 9.7 per cent in August, it still remains within the Bank of Ghana’s (BoG) band target of 6 per cent to 10 per cent.
Also, Year-on-Year food inflation exceeded non-food inflation by 2.2 percent with more than three-quarters of the rate of inflation recorded in July 2021 being contributed by Housing, Water, Electricity and Gas (15.2 percent), Transport (12.8 percent) and Food and Non-alcoholic Beverages (10.9 percent).
Inflation for locally produced items was 10.3% while inflation for imported items was at 8.1 percent.
Non-food inflation went up marginally to 8.7% in August 2021 from 8.6% in July 2021. Food inflation also trended higher to record 10.9% inflation from 9.7% in July 2021.
Northern Region and Greater Accra Region recorded the highest overall inflation of 14.6% and 12.8 per cent respectively.
The Eastern Region recorded the least inflation of 3.0% at the regional level.