The New Patriotic Party (NPP) is calling on the Ghana Statistical Service to institute full-scale investigations into alleged irregularities in inflation data, as well as a full review of the data capturing and data processing systems for generating inflation figures in the country. The NPP said on June 13, 2011, it requested the Ghana Statistical Service to provide market retail prices from which Ghana's inflation figures were calculated. The request has since 5th July 2011, been granted. The NPP, per a statement signed by its Policy Advisor, Kwaku Kwarteng, says it has studied the data and "discovered significant irregularities and errors" that the GSS must deal with immediately. "The impact of these irregularities on the resulting inflation figures is obvious. These irregularities could explain the difference between the inflation figures put out by the Ghana Statistical Service and the experiences of people who visit Ghana’s markets. Put in another way, the irregularities justify doubts about the accurateness of the figures the GSS publishes. We call on the GSS to institute full investigations into these irregularities and do a full review of the data capturing and data processing systems for generating inflation figures in the country." Below is NPP's feedback to the GSS: IRREGULATIES IN INFLATION DATA We refer to our letter to the Ghana Statistical Service dated 13th June 2011 asking for the retail market prices (from January to May 2011) for calculating inflation figures. We thank you for sending us the requested data on 5th July 2011 via email. The Policy Research desk of the NPP has studied the data and discovered significant irregularities and errors which we consider the GSS needs to deal with immediately. 1. ITEMS WITH THE PRICE OF ZERO GHANA CEDIS (GH40.00) We discovered that the price of many items at most of the markets for each of the five months, January 2011 to May 2011, were taken as zero Ghana cedis (GH40.00) by your outfit. The meaning is that these items are given out for free at these markets. Below are a few specific examples: Bolgatanga (market code 9101) in January 2011: i. Pineapple (item code 034) ii. Coconut oil (item code 036) iii. Bushmeat (item code 45) iv. Butter (item code 62) v. Men's suit (item code 118) vi. Canvas shoes (item code 142) vii. Construction & repairs (item code 151) viii. Charges for text books (item code 235) Bimbilla (market code 8203) in January 2011: i. Buiscuit (item code 008) ii. Palmnut (item code 022) iii. Fresh mutton (item code 047) iv. Bed sheet, 90" x 100" (item code 160) v. Blanket, 60" x 80" (item code 162) vi. Plain wood table chair (item code 167) vii. TV Set, 20" (item code 188) viii. Plastic suitcase, 24" x 19" x 9" (item code 241) Tamale (market code 8101) in February 2011: i. Bushmeat (item code 45) ii. Fresh prawns (item code 54) iii. Embassy cigarette (item code 89) iv. Men's suit (item code 118) v. Vehicle oil (item code 218) vi. Art silk (item code 135) Sunyani (market code 7101) in March 2011: i. Onions (item code 28) ii. Pawpaw (item code 35) iii. Groundnut oil (item code 37) iv. Guinea fowl (item code 51) v. Canvas shoes (item code 142) vi. Firewood (item code 157) vii. Electric Stove (item code 184) viii. Chloroquin (item code 206) ix. Video house admission (item code 226) Kumasi (market code 6101) in April 2011: i. Fresh herrings (item code 55) ii. Whisky (item code 87) iii. Tobacco leaves (item code 92) iv. Yard of silk (item code 101) v. Property tax (item code 149) vi. Construction & repairs (item code 151) vii. Firewood (item code 157) viii. Bed sheet, 70" x 90" (item code 159) ix. Native doctor service (item code 212) x. Charges for text books (item code 235) Accra (market code 3101) in May 2011: i. Fresh prawns (item code 54) ii. Butter (item code 62) iii. Tusker cigarette (item code 90) iv. Charcoal (item code 156) v. Electric iron (item code 183) vi. Omo (item code 192) vii. Light bulb (item code 200) viii. Doctor's consulting fee (item code 211) These are only a few examples of items that had their prices taken as zero Ghana cedis by your outfit in the inflation calculations. 2. MISSING ITEMS FROM THE INFLATION BASKET In addition, we noted another source of irregularities. For some of the markets, not all the items in the inflation basket were included in the inflation calculations. For example, for January 2011, in store 1 of the Wa market (market code 9204), as many as eleven items were left out of the basket. These items were: i. Pawpaw (item code 35) ii. Coconut oil (item code 36) iii. Palm kernel oil (item code 38) iv. Pork (item code 48) v. Snails (item code 49) vi. Palm wine (item code 84) vii. Men's kente (item code 102) viii. Women's kente (item code 103) ix. Men's suit (item code 118) x. Pyjamas (item code 136) xi. Starch (item code 193) This type of irregularity was observed for several markets, including Ho (market code 5101), Koforidua (market code 4101), and Takoradi (market code 1101). 3. CONCLUSION The impact of these irregularities on the resulting inflation figures is obvious. These irregularities could explain the difference between the inflation figures put out by the Ghana Statistical Service and the experiences of people who visit Ghana's markets. Put in another way, the irregularities justify doubts about the accurateness of the figures the GSS publishes. We call on the GSS to institute full investigations into these irregularities and do a full review of the data capturing and data processing systems for generating inflation figures in the country. Signed: Kwaku Kwarteng, Policy Advisor