Recent information released by the Ghana Statistical Service (GSS) for January 2009 shows a surge of inflationary pressures, as inflation which was range bound around 18 percent increased to 19.8 percent. Food inflation which stood at 10.5 percent at the end of 2008 rose to 16.7 percent at the end of 2008. All this was in the context of the rise in global food and energy prices and the pass-through to domestic prices, strong domestic demand growth , and fast pace of economic activity. Non-food inflation also increased from 14.4 percent at the end of 2007 to 19.1 percent. 

The Bank’s measure of core inflation (defined to exclude energy and utility) which was 9.4 percent in December 2007 increased steadily to 13.9 percent in December 2008, and further to 17.5 percent in January 2009.

The Bank’s Composite Index of Economic Activity (CIEA) showed a steady growth in economic activity into the fourth quarter of 2008 with a year on year growth of 21.1 percent. The latest February survey point to signs of softening consumer confidence at the close of last year, and carried over into the year. Both businesses and consumers have strong and positive expectations about the prospects for the economy in 2009.

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