Ghana’s inflation hits six-month high driven by rising food prices

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Ghana’s annual inflation rate rose to 23 percent in November, reaching a six-month high as food prices continued to surge, the Ghana Statistical Service (GSS) has announced.

This marks the third consecutive monthly increase in inflation, up from 22.1 percent in October and driven predominantly by rising costs of staples such as vegetables, tubers, and plantains.

Government Statistician Professor, Samuel Kobina Annim at a press briefing in Accra highlighted the role of food inflation in the latest figures during a news conference in Accra on Wednesday.

“Vegetables, tubers and plantains are the major drivers of the increment in food inflation,” Prof. Annim stated.

The overall inflation rate of 23 percent in November was primarily driven by food inflation, which rose to 25.9 percent. Non-food inflation, in contrast, dipped slightly to 20.7 percent from 21.5 percent in October. On a monthly basis, food inflation increased by 3.8%, while non-food inflation rose by a comparatively modest 1.4%.

“Out of the overall rate of inflation of 23.0 percent, we saw food inflation rising to 25.9 percent. Given that food has a weight of 42.7 percent in the consumer basket, it was the main driver for the month-on-month inflation,” Prof. Annim explained.

Among food items, plantains recorded an annual price increase of 61 percent, while yams rose by 58.7 percent. Tomatoes, which had previously been a key driver of inflation, showed deflation of 3.7 percent on a month-on-month basis.

Prof. Annim noted that inflation trends are influenced by a variety of factors, including policy measures and base effects from the previous year.

“We always draw attention to the multiplicity of factors that influence the rate of inflation. One, obviously, is the policy effect. But this policy effect always has to be looked at in the context of the real sector, monetary policies, and what is happening with production and services on the market,” he said.

Inflation has been on an upward trajectory since August, reversing a brief decline earlier in the year. The latest figure matches levels recorded in May (23.1 percent).

The GSS emphasised the need for a focused approach to addressing the drivers of inflation, particularly food production and supply chain issues, as part of broader economic management strategies.