Ghana has been listed among the 10 countries in the world with the highest food inflation.
A food security report by the World Bank has indicated that the country’s nominal food inflation (year-on-year) of 54% placed the nation in the 8th position.
Ghana’s food inflation rose to 54.2% in June 2023 from 51.8% in May while non-food price growth decreased to 33.4% in June from 34.6% recorded in May 2023.
Venezuela placed first with a year-on-year inflation of 414% with nominal food inflation category.
It was followed by Lebanon (280%), Zimbabwe (256%), Argentina (117%), Suriname (71%), Egypt (66%), and Sierra Leone (58%) in the 2nd, 3rd, 4th, 5th, 6th and 7th positions respectively.
The report said Ghana’s real food inflation (year-on-year) of 12%, however, placed it at the 9th position.
About Real Food Inflation, Zimbabwe (80%), Egypt (30%), Lebanon (26%), Turkey (16%), Rwanda (15%), Burundi (14%), Lao (14%), Sierra Leone (13%) placed 1st, 2nd, 3rd, 4th, 5th, 6th, 7th and 8th respectively with the highest food inflation.
The report incorporates the latest information between February 2023 and May 2023 for which food price inflation data are available shows high inflation in many low-and middle-income countries, with inflation higher than 5% in 63.2% of low-income countries, 79.5% of lower-middle-income countries, and 67.0% of upper-middle-income countries and many experiencing double-digit inflation.
Nominal food inflation is measured in current prices while real food inflation is measured in constant prices (i.e. in prices of a given period).
However, real food inflation is obtained by adjusting nominal values with an appropriate index of prices, i.e. containing the effect of inflation.
It added that 78.9% of high-income countries are experiencing high food price inflation.
The most-affected countries are in Africa, North America, Latin America, South Asia, Europe, and Central Asia.
The report also revealed an increase in maize and wheat prices, which closed 12% and 14% higher, respectively, after declining in the first half of July 2023.
It consequently drove the increase in the cereal price index, whereas rice prices have remained stable.
On a year-on-year basis, maize and wheat prices are 15% and 17% lower, while rice prices are 16% higher.
Maize, wheat, and rice prices are 8%, 11% and 3% higher, respectively than in January 2021.
The 2023 state of food insecurity and nutrition in the World report highlights the state of global hunger and food insecurity and the challenges and opportunities that urbanization presents in the context of agrifood systems.
The report expressed concern about Russia’s withdrawal from the Black Sea Grain Initiative (BSGI) in global markets.
Food inflation in Ghana averaged 12.89 percent from 2013 until 2023, reaching an all-time high of 61% in January of 2023 and a record low of 5% in July of 2014.
