High inflation pushed 850,000 Ghanaians into poverty in 2022 – report

A World Bank report has indicated that high inflation rates in 2022 pushed an overwhelming 850,000 Ghanaians into poverty.

The report said the African country’s economic crisis last year characterized by high inflation rates had devastating consequences on food security.

Inflation in Ghana soared from 14% to a staggering 54 per cent between January and December last year, making it the highest inflation level seen since the early 2000s.

The impact of this inflation spike according to the World Bank was particularly felt in the rising prices of food, which outpaced the increase in non-food items.

As a result, the real purchasing power of Ghanaians plummeted, hitting the poorest segments of the population the hardest.

“Simulations conducted during this period revealed alarming results, showing that approximately 850,000 Ghanaians were pushed into poverty solely due to the escalating prices in 2022. For these individuals and families, temporary declines in incomes and consumption became entrenched, leading to a situation where poverty became entrenched and, in some cases, even permanent. The situation worsened when it came to food security,” the World Bank report read in part.

“Another disturbing disclosure was that the number of food-insecure Ghanaians surged from 560,000 in the last quarter of 2021 to a staggering 823,000 during the same period in 2022. As food prices continued to climb, a significant portion of the population struggled to afford sufficient food to meet their dietary needs, let alone maintain a healthy and active lifestyle.”

The report suggests that the government must put in place, concerted efforts and strategic policies in the hope that Ghana can recover and ensure a more stable and prosperous future for its citizens.

Click here to read the World Bank report on Ghana

Source: Myxyzonline.com

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