Inflation ends 2024 at 23.8%

By Juliet ETEFE ([email protected])

Consumer inflation ended 2024 at 23.8 percent, surpassing the Bank of Ghana’s (BoG) revised target of 18 percent.

Last December’s inflation data from the Ghana Statistical Services (GSS) is a significant deviation from the 15% ±2 projection by the central bank at the start of the 2024.

The data shows that inflation increased marginally from November’s figure of 23 percent. Month-on-month basis, price changes between November and December 2024 stood at 1.8 percent – a decrease from the 2.6 percent recorded in November.

Food inflation for December 2024 was 25.9 percent while non-food inflation was slightly lower at 20.7 percent. Both sectors experienced notable increases, reflecting the rising costs of staples and other essential items.

Month-on-month food inflation was 2.8 percent, outpacing the non-food category, which recorded 0.9 percent.

In October 2024, the Bank of Ghana’s Monetary Policy Committee (MPC) revised timeline for achieving its 6-10 percent inflation target, pushing it from Q3 2025 to Q4 2025, reflecting persistent inflationary pressures fuelled by rising food prices, fuel costs and the residual effects of currency depreciation earlier in the year.

“The price increases in food items have been steep during the course of the year and together with a fast-paced depreciating currency earlier on in the year, have altered the inflation trajectory and stalled the disinflation process,” the MPC noted in its November 2024 press statement.

Anticipating the elevated inflationary expectations, the MPC – during its November meetings – opted to maintain the Monetary Policy Rate (MPR) at 27 percent, noting the need to anchor expectations while supporting broader economic stability.

Locally produced vs. imported goods

Inflation for locally produced items stood at 27.8 percent, compared to 20.3 percent for imported goods. This suggests that domestic production challenges, including input costs and supply chain inefficiencies, continue to drive up prices more significantly than imported alternatives.

Regional breakdown

The data revealed significant disparities in regional inflation rates. The Upper East Region recorded the highest year-on-year inflation rate at 40.6 percent, while the Eastern Region posted the lowest at 16.8 percent. This divergence highlights the varying economic pressures across the country, with the northern parts often facing sharper price increases due to logistical and supply chain challenges.

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