Amidst a sharp increase in inflation for March this year, there has been an upward trend in the cost of preparing Jollof for a family of five.
The SMB Jollof Index report titled ‘Crisis at the Table’ which gathered data on the subject within six months period revealed that from September 2023 to February this year, there has been a staggering 43% increase in the cost of preparing a pot of Jollof for a family of five in Ghana.
The report found out that, in September last year the cost involved in preparing jollof stood at GH₵277.75 but experienced a substantial increase to GH₵349 in October 2023, representing a 25.7% month-on-month rise.
According to the report, however, there was a slight decrease to GH₵346.5 in November, a marginal decline of 0.7%.
“This suggests that the factors that drove the price increase in October such as potential market disruptions or supply chain issues, may have somewhat stabilized,” excerpts of the report explained.
The SM Jollof Index noted that the upward trend resumed in January 2024 with a 10.5% month-on-month rise, increasing the cost of preparing jollof to GH₵382.75.
The report explained that the underlying factors contributing to food inflation such as currency fluctuations, increased input costs and supply-demand imbalances exerted upward pressure on prices leading to the increase in the cost of preparing jollof.
“The price surge persisted in February 2024, with the cost of jollof rice ingredients reaching GH₵397.25, a further 3.8% increase from January. This marks the highest price point in the six months and underscores the growing affordability challenges Ghanaian households face,” the report highlighted.
Accra and Kumasi Jollof Index
The report further made a comparison analysis of the cost of making the Ghanaian staple in two cities; Accra and Kumasi.
The study found out that within the six months period, the cost in making the staple continuously increased in Kumasi than in Accra, although both cities experienced an increase.
“This quarter’s data shows a departure from the previous quarter’s trend, indicating a significant increase in food costs and a subsequent upward trajectory. Notably, Kumasi experienced a more rapid increase than Accra, with the gap between the two cities narrowing over six months,” the report added.
Ghana saw a substantial reversal in food inflation during the same period, decreasing from 44.8% in October 2023 to 29.6% in March 2024 but food inflation has still been on the rise and remains a significant problem in the country.
About SBM
SBM Intelligence is an Africa-focused geopolitical research and strategic communications consulting firm that addresses the critical need for political, social, economic and market data and big data analytics.