As food prices continued to soar, Ghana's annual inflation rate increased to 23 percent in November, hitting a six-month high, according to the Ghana Statistical Service (GSS). Rising prices for basics like vegetables, tubers, and plantains are the main cause of this month's inflation hike, which has increased for three consecutive months from 22.1 percent in October.
At a news conference in Accra on Wednesday, Government Statistician Professor Samuel Kobina Annim emphasized the impact of food inflation in the most recent numbers during a press briefing. "The main causes of the increase in food inflation are vegetables, tubers, and plantains," Prof. Annim said.
Food inflation increased to 25.9 percent in November, which was the main cause of the total inflation rate of 23 percent. In contrast, non-food inflation decreased marginally from 21.5 percent in October to 20.7 percent. While non-food inflation jumped by a relatively modest 1.4% on a monthly basis, food inflation increased by 3.8%. Food inflation increased to 25.9 percent of the overall inflation rate of 23.0 percent. Food was the primary cause of the month-over-month inflation, according to Prof. Annim, since it makes up 42.7% of the consumer basket.
Plantains saw a 61 percent yearly price increase among food items, while yams saw a 58.7 percent increase. Previously a major contributor to inflation, tomatoes now exhibit a monthly deflation of 3.7 percent.
Prof. Annim pointed out that a number of factors, such as base effects from the prior year and policy initiatives, affect inflation trends. We constantly highlight the variety of factors that affect the rate of inflation. The policy effect is the first, of course. However, this policy effect must always be examined in light of monetary policy, the real sector, and market conditions for production and services," he stated.
After a small decrease early in the year, inflation has been rising since August. The most recent number is consistent with May levels (23.1 percent). As part of larger economic management plans, the GSS emphasized the necessity of taking a targeted approach to tackling the causes of inflation, especially those related to food production and the supply chain.
