2023-08-11 08:11:26
The slowdown in the pace of growth in the general price level observed for several months should continue over the coming weeks. According to projections by the Central Bank of West African States (Bceao), the year-on-year inflation rate would stand at 3.4% in August 2023, after an achievement of 3.6% in June and an estimate of 3.5% in July.
Compared to last May when it stood at 3.9%, the inflation rate fell by 0.3 percentage point in June, after reaching 6.0% in January and peaking at 8, 8% in August 2022. This development, indicates the Central Bank, is linked to the good supply of cereal product markets and the fall in the prices of imported food products, in line with the decline in international food prices demanded by the economy. ‘Union.
In fact, food prices rose 3.2% in June after rising 3.5% a month earlier, according to the Note de conjoncture économique dans les pays de l’UEMOA (Bceao, July 2023). This reflects the availability of local cereal products from the 2022/2023 agricultural campaign, which showed an increase of around 17%, after a 13% drop in the previous campaign. Similarly, the price index of imported food products fell 9.2% last June, after falling 16.2% a month earlier. This development is supported by the decline in the international prices of consumer products such as oil (-36.7%), wheat (-36.4%) and milk (-24.2%). On the other hand, tensions persist on the world prices of sugar and rice, the prices of which have respectively increased by 26.5% and 6.2%.
The downward momentum of expected inflation would also be supported by the continuation of government actions to preserve the purchasing power of populations, as well as the monetary policy measures taken by the Central Bank, in particular the cumulative increase of 100 basis points of the policy rate.
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QA August 11, 2023
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