Some 850,000 Ghanaians were pushed into poverty in 2022 due to high inflation rates, a report released by the World Bank has revealed.
The report says the severe economic crisis in 2022 characterized by soaring inflation rates had devastating consequences on food security and poverty in the country.
The year-on-year inflation that rose from 14% to a staggering 54% from January to December, according to the report made it the highest inflation level in the country 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,” portions of the World Bank report stated.
“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 added.
The report admonished government to adopt strategic policies in the hope that Ghana can recover and ensure a more stable and prosperous future for Ghanaians.
Read the full World Bank report here.