(Business in Cameroon) - Household final consumption prices in Cameroon increased by an average of 5.1% YoY during the first half of 2022. This inflationary surge is driven, according to the National Institute of Stats (INS), by the increase in the prices of food products (+8%) over the period.
"The 3.6% increase in the prices of imported products over the last twelve months, as well as those of local products by 3.8%, has roots in the negative impacts of Covid-19 and conflict between Russia and Ukraine. These factors have further contributed to the increase in the price of grains, oilseeds, raw materials, agricultural inputs, energy, construction materials, and sea freight on the international market," the Institute revealed in a recent report, highlighting that prices continue to rise despite the mitigation measures deployed by the central bank.
Indeed, at the end of the very first session of its Monetary Policy Committee (MPC) in 2022, the Beac raised two of its key rates (the Tender Interest Rate and the Marginal Lending Facility Rate). This strategy was aimed at making liquidity more expensive for commercial banks, thus increasing the cost of bank credit. Also, despite an explosion in the price of finished petroleum products and maritime freight, the Cameroonian government has decided to keep pump prices unchanged, through a subsidy estimated at CFA780 billion over the whole year.