Nearly 850,000 individuals were pushed into poverty in 2022 due to rising prices.
According to the latest World Bank Economic Update, the considerable rise in prices worsened food insecurity in Ghana, particularly toward the end of 2022.
It explained that food insecurity increased toward the end of 2022, correlating with the highest inflation rates.
“The number of food-insecure individuals rose, with higher prevalence rates in the post-harvest season. Food insecurity at crisis and emergency levels is expected to remain elevated through mid-2023”.
The report furthered that macroeconomic crises -and particularly inflation- hurt the poor first and foremost, thus it is important to beef up safety nets to protect the most vulnerable.
The report wants short-term responses to include enhanced and flexible social protection programmes to support vulnerable households.
Again, it said long-term strategies should focus on enabling farmers to adjust to global demand and market opportunities.
The report pointed out that investments in agriculture, climate-smart initiatives, infrastructure, and income diversification can enhance resilience and livelihoods.
Poor more exposed to inflationary shocks
The report also said the poor are more exposed to inflationary shocks.
“The poor devote a larger share of their incomes to consumption than the non-poor. The poor are less likely to rely on income that is indexed to inflation than the rich. For example minimum wage in Ghana increased by just 10% when inflation between January 2022 and Jan 2023 was over 50%”, it mentioned.
It added that inflation in Ghana has been mainly driven by high food and energy prices, leading to increased poverty.
