KEY POINTS
- Ghana’s consumer inflation rose to 21.5% year-on-year in September 2024.
- Excluding food and energy, core inflation stood at 19.6%, showing a broader rise in prices.
- The inflation surge has put a significant strain on households, increasing the cost of living.
For any Ghanaian, it is disheartening to realize that the inflation rate continues to go up time and again. According to the current data as provided by Reuters, consumer inflation increased by 21.5% year-on-year in September mainly due to food inflation. To many households across this country, this surge is deepening their financial burden, especially to those struggling to pay for their basic needs.
It is noteworthy that the core of this problem can be traced to a number of causes, ranging from supply chain disruptions to the global economic crisis. Nevertheless, what enrages most Ghanaians is the fact that there has not been solution in place to address these ever-evolving abnormalities and survival is becoming more difficult by the day. Basic foods which were formerly cheap, are today considered as a luxury to many households. Tomatoes, maize, and yams have increased in price, and from the look of things they are yet to reduce their prices.
Struggling families and ineffective policies
Ghana’s agricultural sector in theory should be able to produce enough food to ensure that the food prices are stable. However, weak infrastructure, volatile weather conditions, and unstable government support remain our major setbacks to local production. As much as Ghana loves to be recognized as one with an agrarian economy, the country still battles with food insecurity.
The Government has however attempted to intervene especially through measures that seek to foster local production. However, where there is no clear policy to tackle high inflation in the long run, such measures are like applying a plaster on an open wound. This latest inflation hike particularly one where food costs were driving the increase is evidence that these interventions are ineffective.
Long-term implications for Ghana’s future
With inflation extending towards even basic necessities, many individuals in Ghana have had to make hard decisions; eat less, pay school fees, or do without health care so as to live. However, as the economic challenge rises, the society as a whole is feeling its impact. More families are falling into poverty, and it’s hard to imagine how the economy will grow if things continue like this.
Ghana needs more than just spot repairs; it needs a sound and sustainable development strategy to address these problems. A priority should be made of investment in local agriculture, improved storage, and better access to finance for smallholder farmers. If not, the inequalities, are widened and thus the negative consequences become evident in the society.
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