Ghana Inflation Rises to 23.8% in December on Food Costs

AFRICAN BUSINESS AND ECONOMYJanuary 16, 2025 at 11:32 AM UTC

TLDR

Ghana’s annual inflation rate rose to 23.8% in December 2024
That's an 80-basis-point increase from November per GHS data
This marks the highest inflation since April 2024 and the third-highest for the year

Ghana’s annual inflation rate rose to 23.8% in December 2024, an 80-basis-point increase from November, according to the Ghana Statistical Service (GSS).

This marks the highest inflation since April 2024 and the third-highest for the year, following March’s 25.8% and April’s 25%.

The rise was driven by food and non-alcoholic beverages, which saw inflation climb sharply to 27.8%, up from 25.9% in November. Vegetables, tubers, and plantains recorded the highest category inflation at 46.1%. Non-food inflation, by contrast, eased slightly to 20.3% from 20.7%.

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Points clés à retenir

The Ghanaian cedi depreciated by 22.6% in 2024, closing at 14.65 GHS per US dollar. This depreciation, peaking at 16.25 GHS in October, coincided with higher inflation in the first half of the year. Favorable policies and improved sentiment helped stabilize the currency in Q4. However, inflationary pressures remain, particularly in food prices, which outpaced gains in other sectors. While non-food inflation softened, housing and utilities saw year-on-year rises of 26.3%, and health-related costs increased by 21.4%. Addressing inflation requires policies that stabilize the cedi and manage supply-side pressures in key sectors like food and energy.

Ghana

Inflation

Interest Rates

Economy

GDP

CPI

Consumer Prices