Ghana Faces Fresh Inflation Threat as Government Statistician Warns of Severe El Niño

Government Statistician Dr Alhassan Iddrisu has cautioned that an expected severe El Niño event could trigger fresh increases in the cost of living in Ghana by disrupting agricultural production, electricity generation and global supply chains.

He warned that changing weather patterns could affect rainfall distribution, reduce food production and place additional financial pressure on households if appropriate preventive measures are not introduced.

According to a report by AdomOnline.com, his concerns come amid an increase in Ghana’s inflation rate to 5.5 per cent in October 2026, raising questions about how the anticipated climate phenomenon could affect prices in the coming months.

Speaking about the potential economic consequences, Dr Iddrisu called on policymakers to take meteorological forecasts seriously and incorporate them into national planning to minimise the possible effects on the economy.

He identified agriculture as one of the sectors most vulnerable to the anticipated weather changes, explaining that inadequate rainfall could reduce crop yields, disrupt food production and create shortages that could eventually drive up market prices.

Electricity generation is another area of concern, particularly because Ghana depends significantly on hydropower to meet its energy needs.

Dr Iddrisu explained that prolonged dry conditions could reduce water inflows into the Akosombo Dam and other reservoirs, potentially affecting electricity production and increasing operational expenses for businesses.

He also highlighted the risk of imported inflation, warning that weather-related disruptions in countries supplying Ghana with food and other essential commodities could increase import costs and translate into higher prices locally.

The Government Statistician further identified cocoa production as another sector that could experience significant effects from the changing weather conditions, with possible consequences for cocoa supply and prices.

The Ghana Meteorological Agency has warned of a developing severe El Niño event, which could have implications for rainfall patterns, agricultural activities, water resources and hydropower generation.

The period between November 2026 and April 2027 has been identified as particularly important for Ghana in monitoring the potential effects of the phenomenon.

Dr Iddrisu stressed the need for government institutions to integrate available weather projections into their economic assessments and policy decisions.

He maintained that early preparation and appropriate interventions would be essential to protecting households and businesses from possible supply disruptions and renewed inflationary pressures.

Source: https://mobile.ghanaweb.com/GhanaHomePage/NewsArchive/El-Ni-o-could-trigger-fresh-food-and-electricity-price-hikes-Government-Statistician-2060127

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