A recent analysis by the 3News Research Desk has highlighted the significant impact of inflation on the purchasing power of the Ghanaian cedi.
According to the report, GHC1000 in 2021 now holds the equivalent value of only GHC450 due to the steep rise in inflation.
The report indicates that inflation has drastically reduced the purchasing power of 1000 cedis. What could be bought for GHC1000 in 2021 now requires a staggering GHC2,216.
In 2021, Ghana’s inflation rate was approximately 9.98 percent. However, by June 2024, the inflation rate surged to 22.8 percent. This dramatic increase has substantially eroded the value of money, making everyday goods and services significantly more expensive.
This steep inflationary trend has profound implications for consumers and businesses. For individuals, it means higher costs for basic necessities such as food, housing, and transportation, straining household budgets and reducing disposable income.
For businesses, it translates to increased operating costs, which may lead to higher prices for goods and services, further perpetuating the cycle of inflation.
451 cedis is the new 1000 cedis due to inflation.
Work done by 3News Research Desk has revealed that inflation has reduced the purchasing power of 1000 cedis.
This means what you could buy for 1000 cedis in 2021 now cost you 2,216 cedis.#TV3GH pic.twitter.com/Bv9VGb5FqZ
— #TV3GH (@tv3_ghana) July 11, 2024