Ghana, according to the Dr Charles Nyaaba, Executive Director of the Peasant Farmers Association of Ghana (PFAG), has the highest level of food inflation in the West African sub-region.
On the Continent, Ghana is behind Zimbabwe and South Africa in terms of food inflation.
Making the assertion during the NorvanReports and Economic Governance Platform X Space Townhall Discussion on the Topic “Mid-Year Budget Statement: Recession or Growth Signal”, Dr Nyaaba quipped that despite having a high food inflation level, Government has done little to address the challenge.
“Ghana has the highest level of food inflation in West Africa, on the African Continent Ghana is only behind Zimbabwe and South Africa,” he noted.
“Despite having high food inflation than countries like Nigeria, Burkina Faso and Cote d’Ivoire, Government has not put in place any serious measures to curb rising food inflation. But these African countries that I mentioned on the other hand are seriously fighting food inflation,” he added.
Food inflation in Nigeria and Cote d’Ivoire is around 25%, and 5.9% respectively.
In Ghana, food inflation for June 2023 exceeded the national average (42.5%) standing at 54.2%, May’s food inflation was 51.8%.
Inflation, according to a World Bank report, pushed nearly 850,000 Ghanaians into poverty at the end of the 2022 year.
Additionally, high inflation significantly worsened food insecurity in the country with a quarter of the population deemed to be food insecure at end-2022.
According to available data from the Ghana Statistical Service (GSS), 23% and 44% of Ghana’s population are consumption and multi-dimensionally poor.
Speaking further during the X Space Conversation, Dr Nyaaba noted the PFAG was unimpressed with the mid-year budget review presented by the Finance Minister.
According to him, the statements made by the Finance Minister about the agriculture sector and progress in the first half of 2023 are not reflective of current trends and happenings in the sector.
He noted that, costs of farming inputs for food production by farmers are still high and that until government does something about it, food prices will continue to remain high in the country further increasing the country’s headline inflation.