Ghana has emerged as the country with the highest food inflation rate among lower middle-income African nations, according to the World Bank’s February 2025 Food Security Update. The report reveals that Ghana’s food inflation rate stood at 28.3% in December 2024, placing it at the top of the list in the region. This alarming figure underscores the growing economic challenges facing the country, particularly in the area of food security and affordability.
A Regional Comparison
Ghana’s food inflation rate of 28.3% far exceeds that of other lower middle-income African countries. Egypt, which ranked second, recorded a food inflation rate of 20.8% in December 2024, while Zambia came in third with a rate of 19.2%. The World Bank’s data highlights the severity of Ghana’s situation, as it continues to grapple with rising food prices that outpace overall inflation.
The report defines domestic food price inflation as the year-on-year change in the food component of a country’s Consumer Price Index (CPI). It notes that food price inflation remains moderately high across many low- and middle-income countries. Between October 2024 and January 2025, food price inflation exceeded 5% in 73.7% of low-income countries, 52.2% of lower-middle-income countries, and 38% of upper-middle-income countries. In high-income countries, however, food inflation was significantly lower, at just 5.6%.
The Global Context
The World Bank’s findings reveal a troubling global trend: food price inflation is outpacing overall inflation in 56% of the 164 countries analyzed. This disparity highlights the disproportionate impact of rising food costs on households, particularly in developing nations like Ghana. The report attributes the surge in food prices to a combination of factors, including supply chain disruptions, climate change, and geopolitical tensions.
In Ghana, the high food inflation rate has exacerbated the cost-of-living crisis, with many households struggling to afford basic necessities. Staple foods such as maize, rice, and wheat have seen significant price increases, further straining family budgets. The situation is particularly dire for low-income families, who spend a larger proportion of their income on food.
Trends in Agricultural Commodity Prices
The World Bank’s update also sheds light on global trends in agricultural commodity prices. Since its January 2025 report, the agricultural and export price indices have risen by 3% and 6%, respectively. The cereal price index remained stable, but individual commodities experienced varying price changes.
Maize prices increased by 3%, while wheat prices rose by 5%. In contrast, rice prices fell by 10%. On a year-on-year basis, maize prices are 10% higher, while wheat and rice prices are 6% and 19% lower, respectively. Compared to January 2020, maize prices are 27% higher, wheat prices are 2% lower, and rice prices are 14% higher.
These fluctuations in commodity prices have significant implications for Ghana, which relies heavily on imports to meet its food needs. The rising cost of maize, a key staple, has contributed to the country’s high food inflation rate. Similarly, the volatility in wheat and rice prices has made it difficult for consumers and businesses to plan and budget effectively.
The Impact on Food Security
Ghana’s high food inflation rate has raised concerns about food security, particularly for vulnerable populations. The World Bank warns that rising food prices could push more people into poverty and exacerbate hunger and malnutrition. In Ghana, where nearly 50 million people in West and Central Africa are already facing food insecurity, the situation is particularly dire.
The government has implemented several measures to address the crisis, including subsidies for farmers and investments in agricultural infrastructure. However, these efforts have yet to yield significant results, as food prices continue to rise. Experts argue that a more comprehensive approach is needed, one that addresses the root causes of food inflation and strengthens the resilience of the agricultural sector.
A Call for Action
The World Bank’s report serves as a wake-up call for policymakers in Ghana and across Africa. It underscores the urgent need for action to address the underlying causes of food inflation and ensure food security for all. Key recommendations include:
1. Investing in Agriculture: Increasing funding for agricultural research, technology, and infrastructure to boost productivity and reduce reliance on imports.
2. Strengthening Supply Chains: Improving transportation and storage facilities to minimize post-harvest losses and stabilize food prices.
3. Promoting Climate-Resilient Farming: Supporting farmers to adopt sustainable practices that mitigate the impact of climate change on crop yields.
4. Enhancing Social Safety Nets: Expanding programs to provide financial assistance and food aid to vulnerable households.
Conclusion
Ghana’s position as the country with the highest food inflation rate among lower middle-income African nations is a stark reminder of the challenges facing the region. The World Bank’s report highlights the urgent need for action to address the root causes of food inflation and ensure food security for all. As Ghana continues to grapple with rising food prices, it is clear that a coordinated and comprehensive approach is needed to tackle this pressing issue.
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