Ghana’s rebasing in August 2018 has resulted in a lower inflation rate for September 2019, according to the latest figures released by the Ghana Statistical Service.

Year-on-year September 2019 inflation was 7.6 per cent down by 0.2 percentage points from the 7.8 per cent recorded in August 2019.

This falls within the government’s inflation target of 8±2 with the Bank of Ghana holding the policy rate at 16 per cent for the fourth consecutive time.

However, the new rate is less likely to cause cuts in policy rate as the central bank will wait for months to assess the impact of the rebased figures.

The expansion of the basket for the calculation of the inflation rate as well as the reclassification of some items led to the low inflation figures, Mr Edward Asuo Afram, Chief Statistician and Director of Economic Statistics at the GSS told ClassFMonline.com.

This figure would have been the lowest recorded since March 1992 had the GSS not introduced a new base year in 2018.