Senegal Records Lowest Inflation in Five Years on Easing Food Prices

AFRICAN BUSINESS AND ECONOMYAugust 26, 2024 at 3:25 PM UTC

TLDR

Senegal's inflation in July 2024 hits 5-year low at 0.7%, driven by price drops in food and housing sectors.
Food products and non-alcoholic beverages decrease by 2%, while housing costs go down by 0.8%.
International cereal prices down 3.3% due to increased agricultural production in the Northern Hemisphere.

Senegal's consumer prices grew at the slowest pace in five years last month, standing at just 0.7% driven by falling prices in key items.

These include food products and non-alcoholic beverages, which saw a 2% decrease, and housing-related costs, including water, electricity, gas, and other fuels, which declined by 0.8%. They represent significant portions of the Senegalese inflation basket, with food alone accounting for nearly half.

The drop in international cereal prices, down by 3.3% due to increased agricultural production in the Northern Hemisphere, also contributed to the easing of inflation.

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Key Takeaways

Senegal’s inflation drop marks a significant milestone but the economy faces challenges with persistent sectoral disparities, as demand-driven price increases in services and goods like restaurants, hotels, and household items indicate uneven economic progress. Furthermore, the stark contrast in price movements between local and imported products—down by 2.8% and up by 4.2% respectively—highlights ongoing pressures from international market dynamics. While the overall economic outlook is positive, vigilance is required to address these sectoral imbalances and sustain broad-based economic stability.

Senegal

Economy

Inflation

Interest Rates

Francophone Africa

Consumer Prices

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