Ghana’s inflation rises to 23.8 percent in December, driven by food prices  

Ghana's consumer inflation has risen for the fourth consecutive month, reaching 23.8 percent year-on-year in December 2024, up from 23 percent in November, according to data released by the Ghana Statistical Service (GSS) on Wednesday.

Addressing a press conference, Government Statistician Samuel Kobina Annim explained that the increase was primarily driven by higher food prices.  

“The rate of inflation... is the third highest in the last 13 months and highest in the last eight months,” Prof. Annim stated.  

Food prices a key driver  

Food inflation saw a significant jump, rising to 27.8 percent in December from 25.9 percent in November. This contributed to the overall inflation increase, with specific food items, such as yams, showing drastic year-on-year price hikes of 63.3 percent.  

Conversely, non-food inflation slightly decreased to 20.3 percent in December from 20.7 percent in November. Inflation for locally produced items climbed to 26.4 percent in December compared to 25.4 percent in the previous month. Imported items also recorded a marginal rise in inflation, reaching 17.9 percent in December from 17.6 percent in November.  

Key sectors contributing to the higher inflation include alcoholic beverages, tobacco, and narcotics (28.4 percent); food and non-alcoholic beverages (27.8 percent); and housing, water, electricity, gas, and other fuels (26.3 percent).  

Regional disparities  

The Upper East Region recorded the highest regional inflation at 40.6 percent, while the Eastern Region reported the lowest at 16.8 percent.  

Call for policy interventions  

Prof. Annim highlighted the need for a dual approach to tackling inflation, addressing both monetary and real-sector issues.  

“We do emphasise that there are two perspectives in addressing inflation. One is the monetary side... and the other is the real side, with what we’ve seen with food inflation, more particularly the food that we consume, that are locally produced,” Prof. Annim noted.  

He urged policymakers to focus on production, value chains, transportation, warehousing, and reducing post-harvest losses to stabilise food prices.  

“Policymakers [should] put in diverse interventions, rather than focusing on, let’s say, only exchange rate or focusing on just some selected items that do not cover the variety of food items that influence food prices,” he said.  

Government response  

President John Dramani Mahama, sworn in for his second term on Tuesday, has vowed to address inflation and currency depreciation as part of efforts to ease the cost-of-living crisis.  

The December inflation figure of 23.8 percent surpasses the Bank of Ghana’s revised end-of-year target of 15 percent.

Prof. Annim also announced plans to release a detailed review of 2024 inflation trends next week, highlighting seasonal price variations and historical data.  

“We are hoping that our colleagues in the media... will move the conversation away from a headline figure of 23.8 percent and begin to have a conversation on why,” he said.  

This upcoming report is expected to provide a deeper analysis of food price fluctuations and the broader implications for policy-making in Ghana.