The monthly note on the economic situation of the Central Bank of West African States indicates that the rate of increase in inflation has been maintained in the countries of the Union, in connection in particular with the rise in prices of the “Food Products” components and those of the “Housing” and “Transport” components.
This situation led to a rise in the inflation rate, which stood at 7.5% year-on-year in June 2022, following rising 6.8% the previous month. The increase in the general price level is mainly attributable to the component “Foodstuffs” which contributed 5.7 points to total inflation and, to a lesser extent, to the Housing and Transport functions, which each contributed 0.5 points, underlines the monthly note on the economic situation. The high price level of the “Food” component is explained in particular by the “deficit in the local supply of cereals, the difficulties in supplying the markets in connection with the persistence of insecurity, in a context of a sharp acceleration in world prices (+48.6%), and tensions on the market international».
In particular, according to the source, “price growth reached 23% for cereals, followed by oils (+16%), bread (+9%) and sugar (+7%)”. With regard to the Housing function, the tensions recorded are linked to the rise in the prices of kerosene and solid fuels, in particular wood and charcoal. The increase in kerosene prices is noted in Benin (+35.4%), Burkina (+18.8%), Mali (+21.7%) and Togo (+18.9%), in connection with the rise in world oil prices.
Senegal enlists the lowest pump price of gasoline
With regard to wood and charcoal, tensions are noted in Burkina, Guinea-Bissau, Senegal and Togo. At the level of the “Transport” component, the rise in prices is attributable to land and air transport services, following the increase in fuel prices at the pump in certain countries of the Union.
Indeed, at the end of last June, “the increase in gasoline pump prices over one year reached 23.8% in Togo, 22.3% in Mali, 19.5% in Côte d’Ivoire, 18.8% in Benin, 16 .3% in Burkina, 15.6% in Guinea-Bissau and 14.8% in Senegal”, show the note. The underlying inflation rate, calculated by excluding the most volatile prices, stood at 4.7% in June 2022, following reaching 4.5% in May and April 2022. This development is linked to the rise in the prices of certain foodstuffs, in particular oils (+16.0%), pulses (+17.2%), flour (+20.4%) and meat (+5.1%). All in all, pressures on the prices of these foodstuffs explain 62.2% of the rise in underlying inflation. As for non-food products included in core inflation, the pressures concern in particular “transport and catering services”, details the source.
JEAN-PIERRE MALOU
