The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has cited dry weather conditions in the early part of 2024 as the primary cause of rising food prices last year, which led to low agricultural yields and heightened food price pressures.
Speaking at the 122nd Monetary Policy Committee (MPC) press conference in Accra on Monday, January 27, Dr. Addison highlighted the impact of these conditions on inflation trends throughout 2024.
“Price developments in 2024 indicated a slowdown in the disinflation process, resulting mainly from food price pressures,” he noted. “At the beginning of the year, inflation rose from 23.2 percent in December 2023 to 25.8 percent in March 2024. Thereafter, it declined steadily to 20.4 percent in August but has since risen to 23.8 percent in December 2024, primarily due to food price increases. The increased prices in the food sector were largely attributable to dry weather conditions experienced in the earlier parts of the year, which adversely affected harvest yields. In contrast, non-food inflation declined steadily during the last quarter of the year, settling at 20.3 percent.”
Ghana’s agricultural sector faced significant challenges in 2024, as the severe drought conditions placed the livelihoods of over 928,000 farmers at risk and threatened the nation’s food security.
The Governor’s remarks underscore the critical link between climate patterns and economic stability, highlighting the need for strategic interventions to address the vulnerabilities in the agricultural sector and ensure resilience against future climatic shocks.
Picture source :Our Homeland Ghana
