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

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

The report indicated that the severe economic crisis in 2022 characterized by soaring inflation rates had devastating consequences on food security and poverty in the country.

It also disclosed that the year-on-year inflation surged from 14% to a staggering 54 percent between January and December, 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