The recent inflation data released by the Ghana Statistical Service on Wednesday, August 10, shows that the country’s cost of living has reached alarming levels. The Consumer Price Index (CPI) rose to 31.7 percent in July, compared to 30.9 percent in June, according to the Ghana Statistical Service (GSS).
This jump can be attributed to an increase in food prices and transportation prices. These increases don’t affect everyone equally — urban consumers have higher inflation rates than their rural counterparts, and food prices are typically higher than non-food prices. Surprisingly, the data revealed that Eastern Region recorded the highest inflation rate of 38.1% whereas the Upper East Region recorded the lowest inflation rate of 19.8%.
Food prices in Ghana have been on the rise for the past few months but they reached a new high in July 2022, when inflation hit 31.7%. This is the highest inflation recorded in the past two decades. This means that the cost of living in Ghana is now more expensive than ever before. There are many factors contributing to this change. Some sources say it’s due to the Russian-Ukraine war and the aftermath of the deadly Covid-19 virus.
Experts also say that a shortage of government subsidies is contributing to these food price increases because there has been little investment in agricultural production by both local farmers and international investors. Ghana has a vast of futile lands that are good for crop production but it seems that almost our daily foods are imported goods. The land of plenty yet the land of hunger.
For the past few months, the brawls in our trotro (public transport) seem not to end. The price of food keeps on increasing and transport operators keep on increasing the fare which results in mates exchanging words with passengers. The prices of fuel have seen sharp increases in recent months. This has had a knock-on effect on the cost of living, with food and transport prices also rising. This is having a hugely detrimental effect on the population, particularly those on low incomes. It baffles my mind that we extract crude from Ghana yet we depend on the Western World for petroleum products.
Crudes are exported from Ghana at a cheaper rate and we buy the finished products at a high rate causing the prices of goods and services in the country to rise. The government spends millions of cedis annually on the employees of Tema Oil Refinery (TOR) but we still import crude products. The country spends so much on employees in the Oil and Gas sector yet we do not see any improvement in our Oil and Gas industry. Must we continue to waste our taxpayers’ money to the detriment of low incomers who suffer the most when the prices of goods and services increases?
You could see the pain and frustration in the eyes of an Accra-based trader who is struggling to stay in business due to the high cost of importing and clearing his goods from Ghana’s ports. He said that importers like him have to contend with the high cost of clearing goods with other port charges, levies, and duties on products. He revealed that the depreciating value of the Cedi has increased the cost of freight exponentially. This has led to a decline in purchasing power for many people in Ghana. As a result, people are struggling to afford basic necessities like food and shelter. Master Ansah, noted that he is not only dealing with high import taxes but also the recent hikes in fuel prices.
The government needs to take urgent action to bring down the cost of living, or else the situation is only going to get worse. The government can encourage more locally grown produce and reduce the price of essentials such as milk, bread, and rice by subsidizing these products through a national scheme. Oil refineries in the country must be put to full use.
Can’t we look for long-lasting solutions to our woes rather than running to the International Monetary Fund to provide support each time there is a crisis? Can the IMF provide a solution to all our woes after seeking after them 16 times?
Hmm bro nice piece you really write powerful articles. now the cost of living in this country is really killing us.
I work around there and the port and sometimes it is very sad when you see the frustration on people’s faces when they come to clear their goods. Now the port too is not in the hands of the government but rather a private entity so that is also a cause of increased port fees and difficulty in the clearing of goods. Inflation is indeed killing us as a country.
You seem to be an authority on this ‘inflation’ issue. I am enjoying the insight you are sharing. Thank you.
People don’t want to talk about it. But the Ghana Ports and Harbour is no longer the authority responsible for the shipping and offloading of cargoes at the port. So when importing this private entity called MPS is responsible and it is a foreign company. They do not care about the woes of the ordinary Ghanaian. Don’t know why a president will lease such a huge deal to a foreign company at the detriment of workers and it citizens and is now pointing fingers at other governments because there are hardships. What was Mahama thinking when he made such a deal with MPS? Sad enough the deal is for almost 35 years and we’ve barely spent 6 years. What a shame as a country.
Nice article man. Continue to keep the fire burning. It is a high time the country looks for lasting solutions to our problems rather than always running to IMF and other donors when there is a problem in the country.
There is an influx of sexual content on our media platforms. Radio, tv, online everything is about sex. Also, it is a result of families and societies failing to educate or instill moral values in the upcoming generation. Now, everybody, does he or she pleases to the extent that they do not care about the consequences of their actions.
Please the comment was meant for a different article not this
We are now at the bottom oo. We have really fallen. Ghana is now part of the country with the highest inflation and worse currency now. That tells you how much we have fallen.