El Niño could drive up food prices and inflation – Government Statistician

Government Statistician Dr Alhassan Iddrisu has cautioned that Ghana could face rising food prices and inflation due to an anticipated severe El Niño event. This naturally occurring climate pattern can influence rainfall and temperature patterns globally, potentially disrupting agricultural production, electricity generation, and international supply chains.

The warning follows Ghana's October 2026 inflation rate reaching 5.5 percent. Dr Iddrisu emphasized that policymakers should consider weather forecasts in economic planning and take early actions to protect the economy. One of the major concerns is the impact on agricultural production, especially if reduced rainfall during the farming season leads to lower crop yields and higher food prices.

This could create financial pressure for households, particularly if food shortages coincide with increased demand for essential commodities. The issue extends beyond agriculture, as Ghana's electricity generation capacity is also at risk due to prolonged dry conditions. Reduced rainfall could affect water inflows into dams and power generation, potentially leading to higher operating costs for businesses and industries.

Moreover, international markets could be affected if adverse weather conditions in food-producing countries lead to supply disruptions and increased import costs. Cocoa production, a vital sector for Ghana, is also vulnerable to El Niño's effects, with potential implications for prices and livelihoods of farmers. Dr Iddrisu stressed the importance of incorporating meteorological forecasts into economic analysis and policy planning to mitigate potential impacts on households and businesses.