Ghana’s inflation of 25.8% is the 6th highest in Sub-Saharan Africa, according to the April 2024 World Bank Africa Pulse report.

Zimbabwe, Sierra Leone, Malawi, Nigeria, and Ethiopia came 1st, 2nd, 3rd, 4th, and 5th, respectively, in sub-Saharan Africa.

The report revealed that food inflation (29.6%) was higher than headline inflation (25.8%).

Inflation is an important economic indicator that impacts all sectors of the economy. The African continent has seen a spike in inflation in recent years, which has pushed interest rates up and worsened the cost of doing business and living.

The report said that though inflation is cooling in most sub-Saharan African countries, it remains high.

It alluded to the fact that about 90.0% of the countries in the region (42 of 47) are projected to have lower inflation in 2024 (relative to the previous year). However, the rate of inflation is expected to be lower than the pre-pandemic period for only seven countries.

“Additionally, a group of countries in the region still exhibit persistently high rates of inflation (above target), and, in some cases, these rates have not yet peaked—although this group is gradually becoming smaller. The number of countries with a two-digit (or more) average annual rate of inflation is set to decline to 13 this year (down from a peak of 19 countries in  2022),” it pointed out.

For those 13 countries, it was mentioned that the median inflation rate has dropped modestly from 27% in 2023 to 22.5 percent in 2024.

March 2024 inflation increased sharply

Inflation for March 2024 increased sharply to 25.8% from 23.2% recorded in February 2024.

According to figures from the Ghana Statistical Service, non-food inflation went up by 22.6%, while food inflation increased to 29.6%.

Locally produced items and imported items went up by 26.6% and 23.8%, respectively.

Food and non-alcoholic beverages, as well as transport, were identified as the main drivers for the increase in overall inflation for March 2024.