3.4% inflation rate, INS speaks of market stress

The National Institute of Statistics (INS) in Cameroon published its report on the evolution of inflation in the first half of 2015, showing that the period was marked by overheating of prices, resulting in 3.4% increase in the year.

This threshold exceeds that of the EU standard (CEMAC) which is 3% and also part by considerable progress as compared to the same period in 2014 (1.1%).

"The rise in the general level of prices over the last 12 months is largely due to a 14.5% rise in transport prices of goods and services, after the upward revision of prices of fuel on July 1, 2014.

There is also a 5.2% increase in prices of restaurants and hotels services, arising from the increase in prices of industrial beers in February 2015. This generated a 4.1% increase in prices alcohol, tobacco and drugs, "says the institution in its document

In a country where the market has absorbed over 600 million liters of beer in 2014, the rise in the price of alcoholic beverages is sure to impact the household portfolio.

Furthermore, these economic agents have spent more money to consume fresh vegetables (+ 9%), meat (+ 4.5%) and other basic commodities have increased. On another level, it was realized that the prices of local products have increased faster (+ 3.4%) than imports (+ 1.6%). This last point can be a source of concern for the fabric of local production that loses competitiveness.

This is the largest increase in prices that the country has witnessed since the first half of 2011. The INS now thinks it will monitor developments in food prices due to the decline in household purchasing power, have experienced a decline in inflationary pressures.

However, informed the institution, "if insecurity persists in the Far North region and if the supply of food (onions and peanuts among others) is affected, the rate (global inflation) could be around 4%."