Traders are lamenting the rising cost of foodstuffs, citing multiple economic factors such as high labour costs and expenses incurred in transporting goods from farms and rural areas.
Despite a general slowdown in inflation for January 2025, food inflation remains a major concern, increasing to 28.3% from 27.8% in December 2024.
While the recent reduction in fuel prices has offered some relief, traders argue that the overall cost of doing business in the food sector remains high.
Transportation costs, influenced by fuel prices significantly contribute to the final pricing of foodstuffs in urban markets.
Additionally, labour costs in the agricultural sector continue to rise, further adding to the price pressures on foods.
“Everything is now expensive. Even potatoes, which were once unpopular, are now costly, with a bag selling for GHȼ2,500 or GHȼ2,200. Small potatoes are sold for GHȼ30 or GHȼ50. I don’t believe the reduction in fuel prices affects food prices.
“Labourers are contracted to harvest cassava, pack it into bags, and carry it to the roadside before transporting it. Sometimes, it is not taken directly to Accra but first to a junction before being loaded onto a vehicle bound for Accra.
“If an item costs GHȼ10 at its origin, it will be GHȼ30 by the time it reaches Accra,” Ama Serwaa, a trader at Makola, told Citi Business News.
Some oil marketing companies have begun marginally reducing fuel prices at the pump following the start of the first pricing window in March.
This marks the second consecutive reduction after three successive price hikes earlier this year.
Total Energies has led the latest adjustment, lowering the price of both petrol and diesel from GHS 15.99 in the second pricing window of February to GHS 15.79 per liter in the first pricing window of March.
Shell has also adjusted it fuel prices downward for the first pricing window of March. The price of petrol has been reduced from GHS 15.89 per litre in the second pricing window of February to GHS 15.72 per litre.
Similarly, diesel now sells at GHS 15.77 per litre, down from GHS 15.99 per litre in the previous pricing window.
Despite this downward trend in fuel prices, traders insist that structural challenges continue to exert upward pressure on food prices.
“I don’t believe fuel prices have been reduced. We can’t afford to buy the items, and when we complain, they blame it on transport fares,” Azumah Adwine,a trader, also said.
While the reduction in fuel prices offers some relief, the persistent high cost of food suggests that multiple economic factors are at play.
“At this time of the year, the prices of yam, plantain, and cassava are high. Food prices are expected to decrease in June, July, and August. When fuel prices rise, the cost of everything increases. If fuel prices drop, the prices of all goods not just food items should also decrease, making them more affordable for everyone,” Patricia Opoku Darko, a trader, said.