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Ghanaians Paying More for Basic Necessities as Food Inflation Surges to 28.3% in January

Ghanaians Paying More for Basic Necessities as Food Inflation Surges to 28.3% in January

Food prices in Ghana are climbing fast, stretching household budgets and making basic necessities harder to afford, as the latest Consumer Price Index (CPI) report shows food inflation at 28.3% in January 2025, well above the national inflation rate of 23.5%.

Food remains the biggest driver of rising prices, with no immediate signs of relief. Staples like maize, yam, cooking oil, and fish are becoming more expensive by the month.

Also, transport costs are up, the cedi remains under pressure, and supply chain disruptions are pushing prices higher.

Imported food items cost more due to global price fluctuations, while locally grown produce isn’t faring much better, with production challenges keeping supply tight.

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The impact isn’t the same everywhere. The Upper West Region recorded the highest inflation at 34.3%, while the Volta Region had the lowest at 17.1%. In many areas, rising food costs are forcing people to spend more on groceries and less on everything else.

Despite persistent inflation, the Bank of Ghana maintained its policy rate at 27%, signaling a cautious approach to economic stability.

While interest rates can influence general price trends, food inflation remains largely driven by supply-side factors, making it less responsive to monetary policy.

With food prices showing no signs of slowing, affordability remains a growing concern for many Ghanaians.

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