According to a recent report by the World Bank, the high inflation rates experienced in 2022 had a devastating impact on poverty in Ghana, pushing approximately 850,000 people into poverty.
The severe economic crisis of 2022 was characterized by an alarming surge in inflation, soaring from 14% to an unprecedented 54% between January and December, marking the highest inflation level observed since the early 2000s.
The report highlighted that the escalation of inflation primarily affected the prices of food, which increased at a faster rate compared to non-food items. Consequently, the real purchasing power of Ghanaians sharply declined, hitting the most vulnerable segments of the population the hardest.
During this period, simulations conducted by the World Bank revealed distressing results, indicating that around 850,000 Ghanaians were pushed into poverty solely due to the soaring prices in 2022. For many of these individuals and families, the decline in incomes and consumption became entrenched, leading to a situation where poverty became persistent, and in some cases, even permanent. The situation worsened when it came to food security.
The report also disclosed that the number of food-insecure Ghanaians increased significantly, rising 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.
To address these critical challenges, the report recommends that the government takes immediate and concerted efforts, implementing strategic policies to foster a recovery and ensure a more stable and prosperous future for all citizens of Ghana.
Source: CNR
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