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Ghana Inflation Slows to Ease Pressure on Central Bank
Posted on: 22-Sep-2013        
Ghana’s inflation slowed for the first time in seven months in August, easing pressure on the central bank to raise rates next week to curb price increases.

The inflation rate fell to 11.5 percent from 11.8 percent in July, Baah Wadieh, a statistician at the Ghana Statistical Service told reporters in Accra, the capital, today. Prices declined 0.7 percent in the month, he said.

The Bank of Ghana held the key interest rate at 16 percent on July 31 to help arrest the cedi’s slide, which has dropped 13 percent this year against the dollar, putting pressure on inflation. Revenue from loans for cocoa purchases and the sale of Eurobonds in July should boost foreign-currency reserves and support the currency, Governor Kofi Wampah has said. The bank will announce the monetary policy decision on Sept. 18.

“August inflation coming down reduces pressure on the Monetary Policy Committee to increase interest rates,” Collins Appiah, director of asset management at NDK Asset Management Ltd. in Accra, said by phone. “The cedi is still not very stable.”

Food inflation rose to 7.9 percent in August from 7.3 percent the month before, Wadieh said. Non-food inflation decreased to 14.2 percent from 15.4 percent.

The cedi was unchanged at 2.18 per dollar at 2:35 p.m. in Accra.