(Business in Cameroon) - In January 2024, Cameroon experienced a decrease in its Consumer Price Index (CPI), according to data released on February 19 by the National Institute of Statistics (INS). The report highlights a 0.4% drop in inflation following a 0.1% increase in December 2023.

The INS attributes this reduction primarily to the decline in food product prices, mainly in vegetables (-2.9% following -1.1% in Dec 2023), fish and seafood (-0.7% after -0.2%), oils and fats (-1.5% after +0.6%), fruits (-2.0% after +2.5%), and meats (-0.6% after +1.0%). Conversely, prices for bread and cereals slightly increased by 0.1% after a -0.1% decrease, INS noted.

Meanwhile, the general price level saw a 5.2% year-on-year increase in January 2024, mainly driven by a 5.4% rise in food product prices and a 17.0% surge in transportation costs. "Since reaching a peak of 8.5% in March 2023, year-over-year inflation has gradually slowed, coming down to 5.9% in December 2023 and now standing at 5.2% this month," the INS notes.

However, this inflation continues to erode household purchasing power. On average, over the past twelve months, the inflation rate as of the end of January 2024 stands at 7.2%, thus exceeding the 3% threshold accepted in the CEMAC zone. On a regional scale, inflation rates generally remain close to or above 7%, except in Bamenda, the regional capital of the Northwest, which records the lowest rate at 5.7%. In contrast, Ngaoundéré, the regional capital of Adamawa, records the highest rate, 8.4%. According to INS forecasts for 2024, the inflation rate is expected to stabilize around 7% for the year, more than double the threshold set by CEMAC.