Ghana records highest food inflation rate among lower middle-income African countries

Ghana has the highest food inflation rate among lower middle-income countries in Africa, the World Bank has revealed in its Food Security Update February 2025.

The country’s food inflation rate of 28.3% in December 2024 ranked it 1^st among its peers in the Africa region.

Egypt came 2^nd with a food inflation rate of 20.8% as of December 2024. It was followed by Zambia in 3^rd position with a food inflation rate of 19.2%.

According to the World Bank, domestic food price inflation (measured as year-on-year change in the food component of a country’s Consumer Price Index (CPI)) remains moderately high.

“Information from the latest month between October 2024 and January 2025 for which food price inflation data is available shows high inflation in many low- and middle-income countries, with inflation higher than 5.0% in 73.7% of low-income countries, 52.2% of lower-middle-income countries, 38.0% of upper middle-income countries (no change), and 5.6% of high-income countries (1.8 percentage points lower)”, the Bretton Woods institution said.

In real terms, it alluded that food price inflation exceeded overall inflation in 56% of the 164 countries for which food CPI and overall CPI indexes are both available.

 Trends in Global Agricultural Commodity Prices

The World Bank also said since its January 2025 update, agricultural and export price indices have risen, closing at 3% and 6% higher, respectively.

The cereal price index closed at the same level. Maize and wheat prices closed 3% and 5% higher, respectively.  Rice prices, on the other hand, closed 10% lower.

On a year-on-year basis, maize prices are 10% higher while wheat and rice prices are 6% and 19% lower. Compared to January 2020, maize prices are 27% higher, wheat prices 2% lower, and rice prices 14% higher.

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