Speaking to the media in Accra Wednesday March 10, 2010, the Director of Economic Statistics at the Ghana Statistical Service, Magnus Ebo Duncan said the drop indicates a 0.55% drop from the January rate. The drop he said is the lowest in eight months and the lowest in 22 consecutive months.
He indicated that the food sector is the major contributor to the fall with the fruits sub-sector contributing a negative figure, adding however, that prices rose 1.5% in February.
The downward trend in the country’s inflation led to a drastic cut in the policy rate of the central bank. The Bank of Ghana cut its policy rate by 200 basis points from 18% to 16% in February.
Announcing the rate cut, the governor of the Bank of Ghana, Mr. Kwesi Amissah Arthur said the Monetary Policy Committee of the bank took into consideration recovery of the global economy, steady diminishing inflationary pressures and growing business and consumer confidence in the domestic economy.
As inflation continues to fall, further cuts in lending rates are expected.
By Emmanuel K. Dogbevi