The World Bank’s Africa Pulse report has placed Ghana as one of the top African nations grappling with substantial inflation, ranking it eighth with a Consumer Price Index (CPI) surge of 23.2% as of mid-2024.
The rapid rise in the cost of basic goods such as food, housing, and transportation continues to put pressure on Ghanaian households, who are finding it increasingly difficult to manage essential expenses amid high inflation.
The cost of living is rising particularly fast across the continent, underscoring economic instability as the region’s CPI changes drastically.
Overall, food inflation in Sub-Saharan Africa reached 5.4% in June, a rate that outpaced the general CPI, recorded at 4.1% for the same period.
Despite the slight stabilization since the late 2022 peaks, food costs remain elevated compared to pre-pandemic levels, making affordability a persistent challenge.
The report reveals a wide gap in inflation rates among African nations, with some experiencing extreme surges, notably in Sudan and South Sudan.
Sudan tops the list with a remarkable 180.2% increase in CPI, significantly higher than other nations and indicative of severe economic distress.
South Sudan follows with a 35% increase, while Malawi comes in third at 33.6%. Nigeria, another economic leader on the continent, ranks fourth with a 31.7% increase in CPI.
Following closely, Sierra Leone, Angola, Ethiopia, Ghana, Burundi, and the Democratic Republic of Congo round out the list of top ten countries, all of which are experiencing significant hikes in consumer prices.
Experts point out that this high inflation reflects a range of factors, from external economic pressures, such as fluctuating global oil prices, to local fiscal policies and supply chain disruptions.
In Ghana, particularly, the inflation surge impacts vulnerable households the most, as prices for everyday essentials soar. The World Bank notes that this economic trend places a heavy burden on consumers and governments alike, prompting difficult decisions regarding social benefits, interest rates, and wage adjustments.
As inflation continues to shape the region’s economic landscape, both policymakers and businesses are urged to focus on solutions to stabilize the cost of living and protect those most affected by these economic shifts.
With inflation rates in double digits for the vast majority of Sub-Saharan economies, analysts predict ongoing pressure on the cost of living, which will demand continued monitoring and intervention across the continent.
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Ghana ranks 8th as consumer goods prices surge amid regional inflation crisis