Government Statistician Dr Alhassan Iddrisu warned that Ghana could face fresh inflationary pressures from an anticipated severe El Niño event. The climate phenomenon could push up food prices, increase business operating costs and worsen the financial pressures households face.
Ghana's October 2026 inflation rate rose to 5.5 per cent.
The warning comes after the Ghana Meteorological Agency identified a developing severe El Niño event, with potential implications for rainfall patterns, agriculture, water resources and hydropower generation. The main period of concern for Ghana is expected to run from November 2026 to April 2027.
Dr Iddrisu urged policymakers to factor weather forecasts into economic planning and take early measures to protect the economy against possible disruptions.
One of the major concerns is the potential impact of El Niño on agricultural production, particularly if changes in rainfall patterns result in inadequate rainfall during the farming season. A decline in agricultural output could create further pressure on household budgets, especially if food shortages coincide with increased demand for essential commodities.
Dr Iddrisu warned that a reduction in rainfall could affect crop yields, weaken food supply and eventually translate into higher prices for consumers.
The potential consequences, however, extend beyond agriculture, with Ghana's electricity generation capacity also exposed to the effects of prolonged dry conditions. Dr Iddrisu identified the country's dependence on hydropower as another area of concern, explaining that reduced rainfall could affect water inflows into the Akosombo Dam and other reservoirs, with possible consequences for electricity generation.
Cocoa production is another area the Government Statistician has identified as vulnerable to the anticipated weather conditions. Given the importance of rainfall and temperature to cocoa cultivation, any adverse changes could affect production and influence prices, with implications for farmers and the wider cocoa industry.
Dr Iddrisu noted that El Niño usually affects cocoa a lot, and when it affects cocoa, it affects cocoa prices.
Dr Iddrisu has consequently called for meteorological forecasts to be incorporated into the country's economic analysis and policy planning, arguing that early preparation could help limit the potential impact on households and businesses. He stressed that the projections from the Ghana Meteorological Agency should inform government decisions and help authorities anticipate possible disruptions before they translate into significant economic difficulties.