(Business in Cameroon) - Cameroonian President Paul Biya signed a decree on March 6 validating the 5.2% increase in the salaries of civil and military personnel. This salary increase, which has been effective since February, was announced in late January 2023 to help the beneficiaries navigate the recent surge in fuel prices.

The government said it is a way to "guarantee the purchasing power of consumers" in the face of the measures taken to “preserve budgetary balances after the prices of oil products soared on the international market”. However, the acceleration of product prices on the local market that accompanied the entry into force of the new finance law and the new fuel prices raises concerns that the wage increase will not be sufficient.

Indeed, following the increase in fuel prices, the government approved an increase in taxi fares reaching 25% for some services. The special tax on petroleum products was also extended to natural gas. All of these measures contribute to the acceleration of prices on the local market, with inflation projected at 6% in 2023 by the IMF, double the tolerance threshold of 3% allowed in the CEMAC zone.

BRM