Cameroon’s annual inflation rate dropped to 4.5% in 2024, following two years of sharp price increases, according to a January 21 report by the National Institute of Statistics (INS). The figure came in lower than the 7.0% inflation rate initially forecasted by the INS for 2024.

Earlier projections had warned of higher inflation due to a fuel price hike on February 3, 2024, which was expected to drive up costs for transportation, food, and manufactured goods. “The inflation rate is likely to reach around 7.0% by the end of 2024, following the direct and indirect effects of the fuel price adjustment,” the INS had noted in its 2023 inflation report and 2024 outlook.

The slowdown in 2024 marks a significant improvement compared to 2023, when inflation was 7.4%, and 2022, when it reached 6.3%. During those years, rising prices for food and transportation had fueled inflation. In contrast, 2024 saw more stable prices, thanks in part to a 0.2% drop in the cost of furniture, household items, and cleaning supplies, as well as stable costs in communication, education, recreation, and culture.

While inflation has eased, it remains above the 3% benchmark set by the Central African Economic and Monetary Community (CEMAC), which includes Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea, and Chad. The government, however, remains optimistic about bringing inflation down to the 3% target by the end of 2025.

To meet this goal, the INS advises authorities to continue expanding energy and road infrastructure and improving access to agricultural production areas. “These measures should ensure a stable and affordable supply of food throughout the year. Without such efforts, rising prices could continue to severely impact household purchasing power,” the INS warned.

Despite the progress in 2024, the effects of inflation in recent years have taken a toll on household budgets, especially for essential expenses. Efforts to address these challenges will remain crucial in the year ahead.

Source: Business in Cameroon