Ghana’s inflation rate surged to 23.8% in December, surpassing the government’s end-of-year target of 15%, according to the Ghana Statistical Service. This marks a slight increase from the 23.0% recorded in November and represents the fourth consecutive month of rising inflation.

Food inflation was the main contributor to the increase, rising from 25.9% in November to 27.8% in December. Meanwhile, non-food inflation saw a small decline, dropping from 20.7% to 20.3%.

Professor Samuel Kobina Annim, Government Statistician, explained that the 23.8% figure reflects the year-on-year increase in the prices of goods and services between December 2023 and December 2024. He highlighted the significant gap of 7.5 percentage points between food and non-food inflation.

The government’s failure to meet its inflation target poses a serious challenge to the country’s economic recovery. High inflation continues to erode purchasing power, raise the cost of living, and potentially hinder economic growth.

The new administration under President John Dramani Mahama will now face pressure to implement measures to tackle the rising cost of food and address inflationary pressures to bring the rate back within the target range.

Source:TheDotNews