The rate rose up from 15,3 percent from July, the highest recorded since January 2010.
Officials of the Ghana Statistical Service (GSS) attributed the increase to rising prices of housing, water, electricity and other fuels in the non-food component.
According to the service, a price change in the non-food items was the driving force for the rise in the inflation rate.
Deputy Government Statistician, Baah Wadieh explained to journalists in Accra that the non-food group inflation increased from 23.1% to 24%. This was driven by housing, water, electricity and other fuels with an inflation rate of 61.7%.
Inflation for imported items hit a rate of 21.6% while the locally produced items recorded a rate 13.8%, according to him.
The food inflation rate increased from 5% recorded in July to 5.1%. The group was dominated by the mineral water and soft drinks subgroup which recorded an inflation rate of 22.1%.
The monthly change rate in August 2014 was -0.2% compared to the 1.6% recorded in July.
He said the year-on-year non-food inflation rate for August 2014 was 24.0% compared to 23.1 per cent recorded for July 2014.
“The year-on-year non-food inflation rate is more than four and half times higher than the food inflation rate,” Mr Wadieh said.
The Central Region recorded the highest regional year-on-year inflation rate with 20.4 per cent while the Upper West Region recorded the lowest with 12.3 per cent.
The inflation rate for Greater Accra Region was the same as the national average of 15.9 per cent.
Economists explain inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on year basis. It effectively measures the change in the prices of a basket of goods and services in a year.
Inflation is said to occur due to an imbalance between demand and supply of money, changes in production and distribution cost or increase in taxes on products.
Consequently, when the price level of goods and services rises, the value of the currency also reduces. Therefore, each unit of currency buys fewer goods and services, thus impacting on consumers.
However, a moderate level of inflation is said to characterise a good economy.
Some experts believe that an inflation rate of two or three per cent beneficial for an economy as it encourages people to buy more and borrow more, because during times of lower inflation, the level of interest rate also remains low.
African Eye News