Ghana’s inflation hits 6th highest in Sub-Saharan Africa

The inflation rate currently stands at 25.8%, marking a sharp increase from the previous month and causing a significant impact on everyday life for the country's residents.

The World Bank report places Ghana behind only Zimbabwe, Sierra Leone, Malawi, Nigeria, and Ethiopia in terms of inflation rates.

The report highlighted that while inflation is cooling in most Sub-Saharan African countries, it remains high. Of particular concern is the fact that food inflation in Ghana is even higher than the overall inflation rate, sitting at 29.6%.

For everyday Ghanaians, this means that the cost of essential goods and services is rising rapidly, making it harder for young people and families to make ends meet. Transport and food and non-alcoholic beverages were identified as the main drivers of the inflation spike.

The report also suggested that while 90% of Sub-Saharan African countries are projected to have lower inflation in 2024 compared to the previous year, Ghana is one of only 13 countries in the region that still has a double-digit inflation rate.

Although the report does indicate that inflation in these 13 countries, including Ghana, is slowly dropping from 27% in 2023 to 22.5% in 2024, the pace of change may still be too slow for many residents struggling with the high cost of living.

The Ghana Statistical Service noted that both locally produced and imported items have seen significant price increases.

Locally produced items have gone up by 26.6%, while imported items have increased by 23.8%. These rising costs could potentially hit young people the hardest, as they may face challenges when it comes to housing, education, and other expenses.

While the economic landscape remains challenging, there is hope that the inflation rate will begin to decline in the coming months.

The government's economic strategies and global market factors will play significant roles in shaping the future economic environment in Ghana.