AS Ghana heads into a pivotal presidential election on Saturday, the country faces mounting economic challenges, with consumer inflation reaching 23 percent in November, up from 22.1 percent in October. The rise in inflation is primarily driven by escalating food prices, particularly in vegetables, tubers, and plantains.
Government statistician Samuel Kobina Annim highlighted that food inflation remains the key contributor to the overall price hike, exacerbating the economic strain on households. ‘Vegetables, tubers, and plantains are the major drivers of the increment in food inflation,’ Annim stated during a news conference.
The inflation surge comes at a critical time, just days before Ghana’s elections, with voters likely to feel the pressure of rising costs as they head to the polls. The central bank’s decision last week to maintain its interest rate at 27 percent reflects its concerns over food price inflation, which continues to weigh heavily on the economy.
Ghana, a key producer of gold and cocoa, has been grappling with its worst economic crisis in a generation. However, there is some relief on the horizon as the IMF approved the third review of Ghana’s $3bn lending programme on Monday. This review unlocks an immediate disbursement of about $360 million, providing some much-needed financial support ahead of the election.
The ongoing economic turbulence, particularly with food prices and inflation, will undoubtedly shape the electorate’s decision as Ghana’s citizens prepare to vote. How the next administration will address these pressing issues, alongside their strategies for economic recovery, will be crucial in determining the country’s future trajectory.
