Ghana concluded 2024 with a December inflation rate of 23.8%, far exceeding the central bank’s and finance ministry’s target range of 13-17%, according to the latest figures from the Ghana Statistical Service.

This end-of-year rate, marking the fourth consecutive rise in inflation, is also higher than the 23.2% recorded in December 2023. The country, which experienced a record-high inflation rate of 54.1% in December 2022, had seen significant progress in curbing price increases following the implementation of a $3 billion IMF bailout program. However, hopes of a continued decline in 2024 were dashed by challenges such as a weakening cedi against major trade currencies and a severe drought in the northern regions.

The Statistical Service attributes the rise in inflation to surging food prices, with food inflation closing the year at 27.8%—the highest level since March 2024. This spike in essential commodity prices has further strained households and compounded the country’s economic difficulties.

While Ghana’s inflation is projected to drop to single digits by 2025, the slow pace of the decline raises concerns about achieving this ambitious goal. Analysts warn that persistent price pressures could derail recovery efforts unless urgent measures are taken.

Adding to the sense of urgency, Ghana inaugurated a new President yesterday, who has outlined “the restoration and stabilization of the macroeconomic environment” as one of his four top priorities. The nation now looks to its new leadership to chart a course toward economic stability and provide relief for its citizens in the face of these ongoing challenges.