Ghana has the 3rd highest inflation rate in Africa
With a headline inflation rate of 43.1%, Ghana has the highest inflation rate on the African Continent.
Ghana trails Sierra Leone and Zimbabwe which have inflation rates of 44.81% and 101% respectively.
Closely following Ghana are Egypt and Ethiopia with inflation rates of 36.5% and 28.8%.
Inflation has been a persistent concern across several African economies, posing challenges to governments, businesses, and citizens alike.
A number of African nations have experienced prolonged periods of high inflation, which erodes the real value of money and puts pressure on household budgets. Factors contributing to this challenge are diverse and often interconnected.
Supply chain disruptions, currency devaluation, political instability, inadequate infrastructure, and global commodity price fluctuations are among the myriad causes of inflation in the region.
| Rank | Country | Inflation rate |
|---|---|---|
| 1. | Zimbabwe | 101% |
| 2. | Sierra Leone | 44.81% |
| 3. | Ghana | 43.1% |
| 4. | Egypt | 36.5% |
| 5. | Ethiopia | 28.8% |
| 6. | Malawi | 27.3% |
| 7. | Nigeria | 24.08% |
| 8. | Gambia | 17.81% |
| 9. | Rwanda | 17.3% |
| 10. | Angola | 12.12% |
Source: Trading Economics
Headline inflation in Ghana witnessed a marginal uptick (60bps) year-on-year, climbing to 43.1% for July 2023 compared to the 42.5% figure registered in June.
Month-on-month inflation between June 2023 and July 2023 was 3.6 percent
According to the Ghana Statistical Service, Food and Non-Alcoholic Beverages Inflation which stood at a notable 55.0% played a role in driving the overall inflation figure higher.
Month-on-month food inflation was 3.8% with last month’s food inflation being 54.2%.
Ghana has just been recently ranked as the eighth country with the highest food inflation globally by the World Bank.
On the flip side, Non-Food Inflation maintained its inflation figure of 38.3% during the same period, reflecting a less pronounced but significant inflationary pressure within the sector.
Month-on-month non-food inflation was 3.4% with last month’s non-food inflation being 33.4%.
