WAEMU: inflation continues its upward trend in April 2022

WAEMU: inflation continues its upward trend in April 2022

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The pace of inflation accelerated in the countries of the West African Economic Union (UEMOA) in April 2022, in connection in particular with the firmness of the prices of food products and those of the “Transport” and “Transport” components. Lodging”. What the Central Bank of West African States (BCEAO) indicates in a monthly note on the economic situation published on May 31, 2022.

Thus, the inflation rate would come out, year-on-year, at 6.8% in April 2022, against an achievement of 6.6% in March and 6.1% in February. The acceleration in the rate of increase in the general price level is mainly attributable to the firmness of food product prices and to the “Housing” and “Transport” components, whose overall contributions to headline inflation rose respectively from 0.4 percentage point and 0.2 percentage point in March 2022 to 0.5 point and 0.3 percentage point respectively in April 2022.

The rise in prices of the “Food” component stood at 12.1% in April after an achievement of 12.4% in March 2022. This development, explains the Central Bank, is linked to the increase in the price of cereals, with a increase in prices in Burkina (+43.4%), Mali (+20.4%), Niger (+11.8%) and Senegal (+4.7%), due to the drop in cereal production and the exacerbation of market supply difficulties. The surge in international prices for foodstuffs imported by the Union, in connection with the Russian-Ukrainian crisis, the two countries supplying around 30% of the world’s wheat supply, and the exponential rise in freight costs, have contributed to heightened price pressures.

The rise in the prices of the “Transport” component reflects the rise in the prices of land and air transport services, following the increase in the prices of fuel at the pump in certain countries of the Union. Indeed, specifies the issuing institution in its report, with the 62.7% increase in world crude oil prices, in annual variation, the prices at the gasoline pump have been revised upwards in Côte d’Ivoire (+9.4% for the super) in April 2022. This increase in prices at the pump is in addition to that already made in March 2022 in Benin (+10.1%), in Mali (+14, 9%) and in Togo (+17.8%).

With regard to the “Housing” function, the tensions recorded are attributable to the rise in the prices of solid (+1.3%) and liquid fuels (+16.2%), more particularly diesel and, to a lesser extent , wood and charcoal. The increase in the price of domestic diesel is observed in Benin (+26.8%), Mali (+17.5%) and Togo (+16.4%), in connection with the rise in world prices. With regard to wood and charcoal, tensions are noted in Togo (+20.0%), Niger (+10.5%) and Senegal (+4.1%), due to the increase in transport costs to major urban centres.

The underlying inflation rate, calculated by excluding the most volatile prices, stood at 5.0% in April 2022, after reaching 4.5% in March 2022. This development is linked to the rise in prices of certain foodstuffs, in particular oils (+17.1%), pulses (+18.1%), flour (+17.9%) and meat (+8.6%). All in all, pressures on the prices of these foodstuffs explain 62.3% of the rise in core inflation. As for non-food products included in core inflation, the pressures concern transport and catering services in particular.

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