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Yaoundé - 31 May 2020 -
Economy

Cameroon: Inflation could rise to 2.7% due to currency crisis, insecurity and flood

Cameroon: Inflation could rise to 2.7% due to currency crisis, insecurity and flood
  • Comments   -   Thursday, 28 November 2019 12:07

(Business in Cameroon) - In Cameroon, according to a note recently published by the national institute for statistics INS, inflation could rise further at the end of the year. This is due to real threats of a slowdown in the economy due to the tightening of conditions for capital outflow, as well as persistent insecurity in some regions.

In the Far North, in particular,  the INS indicates, because of floods that destroyed crops, hundreds of livestock and grazing land, there will be an increased shortage of cereals (maize, rice, millet, sorghum), onions, beef, etc in markets.

In view of these factors, as the end of the year approaches, and in the absence of measures taken to curb, in the more or less short term, the currency crisis and speculation, inflation could reach around 2.7% by the end of 2019,” the INS notes.

The Institute points out that, on average over the past 12 months, inflationary pressures have persisted in the country. Currently, it is 2.3%, having gained 1.8% in H1 2019, 1.4% in Q1 2019 and 1.1% at end of 2018.

The three main components responsible for this inflation are food products, restaurants, and hotels, as well as clothing and footwear. Prices of imported goods are rising sharply, probably due to malfunctions in the distribution chain, partly caused by the currency crisis.

SA

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