CPDM Crime Syndicate: Inflation risks exceeding 3% threshold in the coming months
Cameroon’s rising inflation is starting to worry the National Institute of Statistics (INS). In a recent note, the public entity warned that if the trend continues, the rate could exceed the 3% threshold set in the Cemac sub-region.
At the end of March this year, inflation averaged 2.9% in the country, very close to the Cemac cap. Worse, some regions have already either reached or exceeded it. These include Ebolowa (+4.5%), Bamenda (+4.4%), Maroua (+4.3%), Bertoua (+3.9%), Bafoussam (+3.6%) and Garoua (+3.0%). INS said the price hike is mainly due to an increase in the prices of food products, especially meat, bread, cereals, flour, fish, oil, and vegetables.
“The rise in the prices of food and energy worldwide constitute a double threat of inflation,” warns the INS. As a result, the agency says, local businesses are likely to face more difficulties in sourcing inputs. This, in turn, could raise producer prices and thus accelerate inflation in local products, including manufactured goods and agricultural products.
To stabilize the general price level, if not to reverse the trend, the stats agency suggests that the government implement additional support measures (both comprehensive and targeted) for businesses and households. It also recommends that the policies for the structural transformation of the economy be accelerated to strengthen the capacity of the national economy to face shocks related to the supply of goods and services.
Source: Business in Cameroon