The inflation rate in the country which stood at a high level of 70.8 percent in December 1995, has dropped consistently to 29.2 percent as at the end of March this year.
That was the first time since November 1995 that the inflation rate has dropped to a level below 30 percent. A press statement signed by the Government Statistician , Daasebre Dr. Oti Boateng said average yearly inflation has also shown a similar consistent decline from 66.4 percent recorded in March 1996 to 38.2 percent in March this year.
It said these figures are the lowest rate to be recorded since June 1995, a period of 21 months. The statement , however cautioned that the erosion of any gains from the drop could arise from an unstable macro – economic environment, including excessive public expenditure during the year.
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It said estimated inflation for non-food items showed more consistent decline over the period than the inflation in food prices which exhibited a slightly volatile deceleration.
The statement said due to the preponderance of the food component in the measurement of inflation, food prices developments over the next two to three months would be critical to the continuing decline of inflation.
