Ghana’s annual inflation rate surged to 23% in November, reaching its highest level in six months, according to data released by the Ghana Statistical Service (GSS). The increase is largely attributed to a sharp rise in food prices, with staples like vegetables, tubers, and plantains leading the charge.
This marks the third consecutive monthly rise in inflation, up from 22.1% in October. At a press briefing in Accra on Wednesday, Government Statistician Professor Samuel Kobina Annim underscored the significant role of food inflation in driving the latest figures.
“Vegetables, tubers, and plantains are the major drivers of the increment in food inflation,” Prof. Annim stated, highlighting the disproportionate impact of these essential commodities on household budgets.
Breakdown of Inflation Trends
The overall inflation rate of 23% in November was driven primarily by food inflation, which jumped to 25.9%, up from 24.1% in October. In contrast, non-food inflation saw a slight dip, decreasing to 20.7% from 21.5%. Month-on-month, food inflation recorded a 3.8% rise, while non-food inflation increased by a more modest 1.4%.
“Food, which accounts for 42.7% of the consumer basket, remains the main driver of inflation. Out of the overall rate of 23.0%, food alone contributed significantly, rising to 25.9%,” Prof. Annim explained.
Notably, plantains recorded an annual price surge of 61%, with yams not far behind at 58.7%. Interestingly, tomatoes, a commodity previously linked to high inflation, showed a rare deflation of 3.7% on a month-on-month basis.
Complex Influences on Inflation
Prof. Annim pointed to a web of factors influencing inflation trends, including government policy, production challenges, and global market conditions.
“We must consider the interplay between policy effects, real-sector activities, and monetary policies. These factors collectively shape the inflation trajectory, alongside production and services dynamics in the market,” he noted.
Broader Economic Implications
The upward inflationary trend since August represents a reversal of earlier gains in price stability. The current rate mirrors levels last seen in May (23.1%).
The GSS has called for targeted measures to address the root causes of inflation, particularly challenges in food production and supply chain inefficiencies. These, it says, should be central to the government’s broader economic management strategy to stabilize prices and reduce the burden on Ghanaians.
As inflation continues to bite, policymakers face mounting pressure to implement solutions that can bring relief to households grappling with rising costs, particularly for essential food items.
Story by: Mercy Addai Turkson
