gold2781/ANALYZING-THE-IMPACT-OF-INFLATION-ON-HOUSEHOLD-PURCHASING-POWER-IN-GHANA

To use data from credible sources to analyze the trend of inflation and create clear visualizations that show its impact on the ability of Ghanaian households to afford basic goods and services. The goal is to make the effect of inflation easy to understand for anyone, not just economists. # ANALYZING THE IMPACT OF INFLATION ON HOUSEHOLD PURCHASING POWER IN GHANA To use data from credible sources to analyze the trend of inflation and create clear visualizations that show its impact on the ability of Ghanaian households to afford basic goods and services. The goal is to make the effect of inflation easy to understand for anyone, not just economists. ## Contents - Project Overview - Data Source - Tools - Data Cleaning and Preparation - Exploratory Data Analysis - Data Analysis - Results and Findings - Recommendations - ### Project Overview This data analysis examines the impact of inflation on household purchasing power in Ghana from 2019 to 2023. The analysis, using official data, reveals that while Gross Domestic Product (GDP) showed a stable growth trend, the country's foreign reserves and exchange rate experienced significant volatility. A strong correlation was found between a weakening Ghana Cedi and a sharp rise in inflation, particularly from 2021 onwards. This inflation was the primary driver in eroding household purchasing power. The central bank's response was to consistently raise the Monetary Policy Rate to combat inflation. Recommendations are provided to enhance fiscal discipline, strengthen domestic production, and improve monetary policy communication to stabilize the economy and protect household finances. - ### Data Source Data was sourced from official Ghanaian government publications, including the Balance of Payments and other economic releases. The dataset included monthly and quarterly figures for Foreign Reserves, GDP, Yearly Inflation, Monetary Policy Rate, and the USD to GHS Exchange Rate. They can be extracted from Ghana Statistical Service (GSS) (statsghana.gov.gh) and Bank of Ghana (BoG) (bog.gov.gh) ### Tools - Microsoft Excel: Data Cleaning, Data Analysis, Data Visualization Download_here ### Data Cleaning and Preparation All data was cleaned and formatted to ensure consistency, with a focu …