Ghana’s inflation rate of 25.8% in April 2024 ranks it as the sixth highest in Sub-Saharan Africa, according to the World Bank’s Africa Pulse report. Zimbabwe, Sierra Leone, Malawi, Nigeria, and Ethiopia took the top five spots in the region.
The report highlighted that food inflation, at 29.6%, exceeded headline inflation. This inflation trend is significant as it affects various sectors of the economy, leading to higher interest rates and increased costs of living and doing business across the continent.
While inflation is moderating in most Sub-Saharan African countries, it remains high. Approximately 90% of countries in the region are expected to experience lower inflation in 2024 compared to the previous year. However, only seven countries are projected to have lower inflation rates than the pre-pandemic period.
The report noted that a group of countries still have persistently high inflation rates, although this group is gradually shrinking. Thirteen countries are expected to have a two-digit or higher average annual inflation rate in 2024, down from 19 countries in 2022. The median inflation rate for these 13 countries is expected to decrease from 27% in 2023 to 22.5% in 2024.
In March 2024, Ghana’s inflation rate surged to 25.8% from 23.2% in February 2024. Non-food inflation rose by 22.6%, while food inflation increased to 29.6%. The main drivers of this increase were food and non-alcoholic beverages, as well as transport costs.
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