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Cameroon: IMF sees inflation at 4.6% in 2022, the highest rate since 2008

Cameroon: IMF sees inflation at 4.6% in 2022, the highest rate since 2008
  • Comments   -   Friday, 01 July 2022 15:44

(Business in Cameroon) - The inflation rate in Cameroon is expected to reach 4.6% in 2022, according to projections by the International Monetary Fund (IMF). The information was reported in a June 29 statement following the 2nd review of the Extended Credit Facility and Extended Fund Facility for Cameroon.

“The outlook is clouded by considerable uncertainty arising from the sharp increase in international commodity prices- especially for oil, fertilizer, and foodstuffs - accentuated by the war in Ukraine, and tightening conditions in international financial markets,” IMF said. This projected rate is the highest since 2008 when inflation was 5.3%.  That year, the high inflation triggered public wrath that turned into a movement called “the hunger riots.” Demonstrations took place in several major cities. To reduce the price of certain products on the market, the head of state, Paul Biya, signed an ordinance on March 7, 2008 (the riots took place at the end of February) exempting imported rice and fish from customs duties, two of the country's most important food products and the ones most consumed by the population.

The IMF's 2022 inflation forecasts are more pessimistic than those of the US rating agency Fitch. In a note on the Cameroonian economy published on June 10, 2022, Fitch projects an inflation rate of 3.3% in Cameroon in 2022. In any case, the projections of the two institutions are above the 3% threshold allowed within the CEMAC region.

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