World Bank rank Ghana 1st as country wit de highest food prices in Sub-Saharan Africa in 2022.
Based on dia October 2022 Africa Pulse Report, since January 1, 2022 food prices for Ghana go up by 122%.
What dis dey mean be say food wey you buy am Ghc100 at de start of de year go now cost about Ghc222 for Ghana.
Senegal be de 2nd country for Sub-Sahara Africa wit de highest food prices at 110%, followed by Uganda who dey third highest wit 107% food price increase.
West African neighbours, Nigeria rank as 4th country with highest food prices of 106.5%.
Food Inflation for Ghana
- Ghana are Oils and Fats (67%)
- Fish and Other Seafood (42.9%)
- Water (42%)
- Cereal products (40%)
- Milk, Diary Products and Eggs (39.7%)
- Fruits and Vegetable Juices (37.7%)
- Live Animals and Meat (34.5%)
Ghana cedi depreciate by 60% – Africa Pulse Report
According to de report, since de beginning of de year, Ghana cedi depreciate by 60%.
De rate of depreciation be major contributor to de increase in food prices and general living costs in de country.
De Ghana cedi in de beginning of de year, January 2022 start dey trade at Ghc6.02 to $1 dollar.
Ten months into de year, de Ghana cedi dey trade at Ghc11.20 to $1 dollar today.
Why de cedi dey underperform
Professor Godfred Bokpin wey be economist and lecturer for University of Ghana explain say investors dey lose confidence in de fiscal outlook of de country.
“Some level of doubt dey around de fiscal sustainability path wey dem outline in de 2022 budget,” he talk.
“Sake of dis, dem go like cover themselves and exit wana market before tins make worse” de Ghanaian economist add.
Dat be what dey happen for de market right now.
De central bank get some level of reserves but e no go fit be sustainable in de long term.
Regional/Global challenges
De recent global tensions between Ukraine and Russia be another challenge on de cedi.
“In de global financial market, nobody dey like uncertainty….some level of stability, certainty de predictability be helpful for de market” Prof Bokpin reveal.
So although bombs den gunfire no dey reach Ghana, de panic de war dey create make people dey sit on dia money instead of investing sake of de market make unpredictable.
Source: BBC
