Government missed its end-of-year inflation target of 15% as the December inflation rate surged to 23.8%, according to the Ghana Statistical Service.
This represents a slight increase from the 23.0% recorded in November, marking the fourth consecutive month of rising inflation.
Food inflation was the primary driver of the increase, jumping from 25.9% in November to 27.8% in December. In contrast, non-food inflation saw a slight decrease, falling from 20.7% to 20.3%.
Government Statistician Professor Samuel Kobina Annim explained that the December inflation rate indicated that prices of goods and services increased by 23.8% on a year-on-year basis between December 2023 and December 2024.
He further noted that there was a significant gap of 7.5 percentage points between food and non-food inflation.
The government’s failure to meet its inflation target poses a significant challenge to the country’s economic recovery.
High inflation erodes purchasing power, increases the cost of living, and can stifle economic growth.
The new government of President John Dramani Mahama will need to implement measures to address the rising cost of food and curb inflationary pressures to bring inflation back within its target range.
