Food inflation fuels cost-of-living pressure – Analyst

By Solomon Nartey Tetteh

Economic Policy Analyst, Ebenezer Otu Okley, has explained why many Ghanaians continue to feel the pinch of rising food prices despite the general inflation rate showing signs of moderation.

Speaking on Business Breakfast on Zed 101.9FM, Mr Okley noted that while Ghana’s overall inflation currently stands at 11.5 per cent, food inflation is significantly higher at 14.8 per cent.

“Food inflation is above the national average. So when people complain that food prices remain high, they are right,” he said.

The economic policy analyst explained that the effect is more pronounced because food accounts for over 60 per cent of household expenditure in Ghana.

“When many Ghanaians receive their income, the bulk of it goes into food. That is why they feel food price changes more directly than other price changes,” he indicated.

Mr Okley further pointed out that inflation calculations rely on averages, meaning that even if prices in non-essential areas such as transport or communication drop, many people may not notice because they spend less on those items compared to food.

He further highlighted that inflation trends take time to reflect at the consumer level.

“Producers feel the changes first, whether it’s a reduction in the cost of raw materials, labour or overheads. It often takes a month or two before consumers begin to see the impact in market prices,” Mr Okley explained.

According to him, consumer behaviour also plays a role.

With Ghanaians accustomed to persistent price increases, many rush to buy in bulk or stock up early, which pushes demand higher and makes it difficult for households to see the benefits of easing inflation.

Mr Okley stressed that while headline inflation figures are important, food inflation remains the most critical factor shaping how the average Ghanaian experiences the cost of living.