INFLATION : Cameroon Heading Towards 5.9 % in 2024
[abelainfo] - According to the International Monetary Fund's report on Sub-Saharan Africa's Economic Outlook, Cameroon is expected to have the highest inflation rate in the CEMAC region in 2024, with a forecast of 5.9 %, a 1.9 % increase compared to government estimates. This figure raises questions about the impact of the recent increase in fuel prices on the national economy.
In the latest International Monetary Fund (IMF) report on Sub-Saharan Africa’s Economic Outlook for 2024, Cameroon is projected to have an inflation rate of 5.9% this year. This estimation places Paul Biya’s country at the top of the list in terms of inflation rates within the Central African Economic and Monetary Community (Cemac).
Although the Cameroonian government has not yet responded to these figures that contradict official estimates, it should be noted that these forecasts exceed the government’s initial target of 4 % by 1.9 %, even before the adjustment of pump prices. With an inflation rate of 5.9 %, Cameroon is well above the regulatory threshold of 3 %.
Local financial analysts comment on this situation by highlighting the recent increase in fuel prices, which has had a noticeable impact on transportation fares and has led to a rise in the costs of food products in the market. It should be noted that this increase in pump prices has occurred for the second time in the span of a year.
While Cameroonian authorities had previously aligned themselves with IMF projections in 2023, it is now urgent to update the data. In fact, the projected consumer price index in the Cemac region exceeds the community norm of 3 % and also surpasses the projections of 3.4% in the West African Economic and Monetary Union (Uemoa) area.
According to IMF forecasts for the year 2024, Cameroon, as the leading power in the Cemac zone, would be followed by the Central African Republic (4.7 %), Equatorial Guinea (4.4 %), Congo (3.6 %), and Chad (3.1 %). Only Gabon would remain below the 3 % threshold with an inflation rate projected for 2024.
Overall, it appears that Cameroon, under the presidency of Paul Biya, will continue to face inflation rates above 3 % for an extended period. According to projections, the inflation rate is expected to remain at 5.5 % in 2025 for Cameroon, while Chad and the Central African Republic would have rates of 4.6 % and 3.1 %, respectively. Gabon, Equatorial Guinea, and Congo would experience inflation rates of 2.1 %, 1.8 %, and 3 % in 2025.
Raphael Mforlem
