According to the World Bank’s latest Ghana Economic Update report, Ghana’s recent high inflation has caused roughly 850,000 Ghanaians to live in poverty.
The survey claims that there has been an alarming spike in product prices over the past year, which has had an effect on the living standards of the majority of Ghanaians on average.
The Economic update that was sighted by 1Family Radio is titled “Price Surge: Unravelling Inflation’s Toll on Poverty and Food Security. It was launched in Accra on Wednesday, July 19, 2023.
The report made a point of highlighting how, when compared to 2021, the average cost for each COICOP (Classification of Individual Consumption According to Purpose) category grew significantly in 2022.
Costs of food rose by an average of 34% in 2022, exceeding the noticeably high average inflation rate of 29% for products and services other than food.
The poor have been particularly affected by this imbalance since they spend a larger proportion of their income on food and are consequently more negatively impacted by price hikes.
“In 2022, the minimum wage in Ghana saw a 10% increase. However, this increase was overshadowed by the staggering inflation rate, causing the real incomes of minimum-wage workers to plummet by nearly 44 percent. Consequently, the average purchasing power of these workers declined by 15.7 percent throughout the year,’’ parts of the report read.
“Surprisingly, the richest 20 percent also suffered a notable decline in purchasing power, losing 15.5 percent. While the wealthy lost more purchasing power in absolute terms, the impact was less burdensome compared to their total expenditure.’’
Therefore, the World Bank urged the government to prioritize agriculture while simultaneously raising the standard and safety of the food produced in the nation.
“The government must prioritize investments in agriculture, including research, development, and technology transfer, to enhance productivity, reduce production costs, and improve food quality and safety.’’
“Diversification of income sources, improved connectivity, and market access can help households better cope with shocks and seize opportunities,’’ it noted.
Source: 1Familyradio
