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
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