percent.

Due to seasonal factors, the months of August, September and October record negative inflation rates and Dr. Grace Bediako, Government Statistician added that barring any change on the external front, there will be marginal changes in the price level year-on-year. However, on a month-on-month basis, there will be virtually no changes, she indicated.

'Over the long term, we expect the impact of foreign exchange fluctuations on price levels but in the short term there will be marginal changes.'

Analysts believe the recent decline in the value of the Ghana Cedi will affect the price of some imported items going forward, thereby increasing inflation.

According to figures released by the Ghana Statistical Service (GSS) yesterday, food inflation drop from 3.79 percent recorded in August 2011 to 3.74 percent in September 2011, while the non-food inflation also went down again to 11.30 percent in September 2011 from 11.38 percent In August 2011.

The non-food group remains the major contributor to the upward pressure on the general price level, though the rate of inflation has been falling since June 2011.

In the food and non-alcoholic beverages group, which has a weight of 44.91 percent, coffee, tea and cocoa; sugar, jam, honey, syrups, chocolate and confectionary; meat and bread and cereals recorded about three or more times the group's average inflation.

Vegetables including potatoes, tubers, fruit and other food products; oil and fats; fish and milk, cheese and eggs recorded the least inflation rates below the average food inflation rate.

In the non-food group, transport; miscellaneous goods and services; clothing and footwear; furnishings, household equipment and alcoholic beverages, tobacco and narcotics recorded inflation above the group's average of 11.30 percent.

However, prices of products in the communications and education sub-groups as well as hotels, cafes and restaurants recorded the lowest and most stable inflation rates during the month.

Once again, the Greater Accra region recorded the highest inflation rate of 9.99 percent as against 10.88 percent recorded in August 2011.

Volta region recorded the least inflation rate of 5.66 percent for September 2011.

Upper East and West, Northern, Eastern and Brong Ahafo regions followed suit recording 5.79, 6.83, 7.76 and 7.80 percent respectively. Western, Ashanti and Central regions also recorded inflation rates of 8.38, 8.83 and 9.93 percent respectively.

By Charles Nixon Yeboah