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Home » Ghana ranks 12th in Africa for high cost of living despite falling inflation

Ghana ranks 12th in Africa for high cost of living despite falling inflation

johnmahamaBy johnmahamaJune 30, 2025 Economic No Comments2 Mins Read
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Ghana has been ranked the 12th most expensive country to live in Africa, according to new data from Numbeo, a global cost-of-living database.

The ranking, which includes 23 African countries, places Ghana behind countries such as Ethiopia, Botswana, Mozambique, and Ivory Coast.

Ghana scored 30.6 on the cost-of-living index, with a grocery index of 33.3 and a relatively low rent index of 12.1. Ethiopia topped the list with a score of 43.2, followed by Botswana (39.5), Mozambique (38.9), and Ivory Coast (38.8).

Other countries ahead of Ghana include Somalia, Cameroon, Mauritius, Zimbabwe, Rwanda, Zambia, and Tanzania.

The Numbeo index reflects the relative prices of food, housing, transportation, healthcare, and other essential services.

While Ghana’s headline inflation has declined steadily in recent months, the country’s overall living costs remain comparatively high due to persistent pressures in food, utilities, and transport sectors.

Ghana’s inflation rate dropped to 18.4% in May 2025 from 21.2% in April, marking the fifth consecutive month of decline.

Further, the Ghana Statistical Service attributed this improvement to reduced transportation costs and a sharp fall in non-food inflation. Food inflation, which remains a major driver of consumer price increases, fell to 22.8% in May from 25% in April.

Non-food inflation dropped to 14.4% from 17.9%. Notably, transport inflation saw a steep decline, falling from 14.9% to 3.1% within the same period.

Despite these improvements, the high cost of living continues to strain household incomes, particularly among low- and middle-income earners. Food prices remain volatile, and utility bills, school fees, and medical expenses continue to weigh heavily on many families.

Civil society organisations and labour unions have urged the government to implement more targeted interventions to ease the cost burden on vulnerable groups.

-thehighstreetjournal.com



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