Ghana ranked 3rd in West Africa, 20th in Africa in cost of living index
Ghana has been ranked 3rd behind Ivory Coast and Senegal in new data on the highest cost of living ranking in West Africa.
It is however ranked 20th in Africa out of 24 countries, data from Numbeo has revealed.
The ranking took into consideration the Rent Index, Groceries Index, Restaurant Purchase Index and Local Purchasing Power Index.
The country’s overall Cost of Living Index(CLI) was 26.0.
For the Rent Index, the nation scored 11.0.
In terms of the Cost of Living Plus Rent Index, Ghana scored 18.8, whilst it obtained a score of 27.2 for the Groceries Index.
With regard to the Restaurant Purchase Index, it scored 22.9.
However, it got a score of 14.8 on the Local Purchasing Power Index.
According to Numbeo, Ghana’s position was largely due to reduced inflation in 2023 and a slowdown in the depreciation of the cedi in the same.
Ghana’s end-of-year inflation stood at 23.2% (December 2023).
Whilst the food inflation rate stood at 28.7% in December 2023, non-food inflation recorded a rate of 18.7%. The Consumer Price Index data also revealed that inflation for locally produced items was slightly higher at 23.8%, while inflation for imported items remained at 21.9%.
The Ghana cedi also ended 2023 at Gh¢11.7 to a dollar on the interbank market rate.
Cote d’lvoire (44.7) was 1st in both Africa and West Africa with the highest cost of living.
It was followed by Senegal with a score of 44.0.
Ethiopia placed 3rd with a score of 43.1, whilst Mozambique and Mauritius were 4th and 5th with scores of 43.0 and 39.8 respectively.
The data revealed that the cost of living in the Ivory Coast is on average 72.3% higher than in Ghana. Similarly, rent in Ivory Coast is on average 53.6% higher than in Ghana.
However, the cost of living in Nigeria is on average 53.5% lower than in Ghana. Similarly, rent in Nigeria is, on average, 8.5% lower than in Ghana.
The government has introduced some new taxes to improve its revenue outlook under the International Monetary Fund programme.
However, experts say this will derail businesses and investor confidence in the country.