Ghana could see a drastic reduction in inflation if the government‘s agricultural policies lead to increased food production, data from the Ghana Statistical Service (GSS) indicates. Locally produced food items dominate the list of goods with the highest inflation rates, suggesting that a boost in local agriculture could significantly lower inflation.
According to GSS data, 18 out of the top 20 items with the highest inflation rates are locally produced food items, with inflation ranging from 42.2% to 114.4%. Moreover, 55.9% of items experiencing inflation rates higher than the national average of 23.5% are locally sourced food products. This trend has been consistent since 2023, highlighting the potential for high local food production at lower costs to result in sustained reductions in food prices and overall inflation.
Many of the food items with high inflation rates are staples consumed by both rich and poor Ghanaians, including ginger, beans, okra, onions, pepper, tomatoes, and yam. The rapid rise in the prices of these everyday goods exacerbates the cost-of-living crisis for citizens, as rising inflation erodes incomes and creates a sense that money is disappearing quickly.
The GSS has consistently provided data highlighting the root causes of high inflation, particularly food prices, in the hope that policymakers will take meaningful steps to reduce inflation. However, substantial action in this area has yet to materialize.
President Mahama‘s administration has proposed several agricultural initiatives, including promoting home gardening and adding agribusiness to the Trade and Industry Ministry’s portfolio. As the new government rolls out its plans, there is cautious optimism that agriculture, one of the administration’s key promise areas, will receive the attention and investment needed to increase food production, lower the cost of food, and ultimately reduce inflation.
Ghana’s inflation has long been driven by food prices and locally produced goods, and prioritizing agriculture could offer a solution to the country’s economic challenges. Many market watchers are hopeful that with the right policies, agriculture can lead the way in stabilizing prices and easing the financial burden on Ghanaians.
