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WAEMU still Africa's champion of low inflation

13/11/2020
Source : Financial Afrik
Categories: General Information

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The inflation rate in the countries of the West African Economic and Monetary Union (WAEMU) recorded a slight decrease of 0.4 percentage points in September 2020 compared to the previous month, according to data from the Central Bank of West African States (BCEAO).

This rate would be 2.9% at the end of September 2020, over one year, after a realization of 3.3% in August 2020. According to the issuing institute, " the deceleration in the pace of increase in the general price level in September 2020 is printed in particular by the Food and Alcoholic Beverages components, whose overall contribution to total inflation was 2.3 percentage points compared to 2.6 percentage points in August 2020, in connection with a relaxation of the prices of edible oils and fresh vegetables, particularly in Côte d'Ivoire and Senegal ".

Remaining the main source of price increases, the increase in the food component is linked to the increase in local cereal prices recorded in Niger (+57%), Mali (+48%) and Burkina Faso (+47%), in particular in relation to the decline in agricultural production for the 2019/2020 season, coupled with insufficient market supply.

The BCEAO services also note an increase in the price of fresh vegetables as well as tubers and plantains in Benin and Togo, due to the persistence of disruptions to distribution channels caused by the Covid-19 pandemic.

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