Food prices remain high despite decrease in inflation in June

GHANA- According to the Ghana Statistical Service, the country’s inflation for June 2024 decreased slightly to 22.8% in June compared to 23.1% in May. 

The latest inflation data revealed a substantial hike in food and other essential consumer goods, prompting calls for policy interventions. 

The most significant price increase was fresh okra, increasing by 87.8%, green pepper at 71%,, and tomatoes at 67.5% year-on-year (YoY) price increase.  

The price of oranges has increased by 55.9% YoY, garlic prices have increased by 50.1%, and avocado prices have experienced a 48.3% YoY price increase for the reported month. Cocoyam leaf prices have increased by 46.5% YoY.  

The prices of kokonte, onions, tomatoes, rice, and yam have increased by as much as 140-360% in the past six months. 

The average monthly price variation for food and essential items for June was 27% compared to the previous month. Food inflation has increased alarmingly over the past year, peaking at 61% in 2023 and 29.6% in 2024.  

The sharp increase in food prices reflects challenges currently experienced in Ghana’s food security. The relatively high food inflation has also caused producers to reduce quantities of food items without changing prices.  

Economists and market analysts attribute this increase in food prices to increased reliance on imported food products. The Ghana Statistical Service revealed that the country imported US$400 million of tomatoes from Burkina Faso in 2023. 

The West African country also struggles with high input costs, while some input resources remain scarce. The agriculture sector also suffers from a lack of credit access, which has inhibited growth and expansion.  

Ghana’s currency’s depreciation has also contributed to a rise in local food prices. In 2024 alone, the cedi depreciated by 13.7% against the US dollar, making it the fourth worst-performing currency in the world.  

The government has been implored to implement more proactive agriculture policies to encourage local production. Ghana has faced criticisms over its agriculture policy, especially the Planting for Food and Joy (PFJ) initiative for corruption and mismanagement.  

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