Despite the rather gloomy global context, Cameroon is showing some resilience. In its recent economic update, the national stats institute (INS) revealed that inflation in the country stood at 3.8% in the first half of this year, reflecting the economy’s good resilience, compared to other countries.
According to INS experts, two factors supported this performance: the diversity and quantity of local products on the market and the fuel subsidy policy adopted by the government. Over the period reviewed, the Cameroonian treasury has spent CFA317 billion to subsidize fuel, the document said, also indicating that the current inflation is driven by the increase in several basic commodities. "This inflationary trend is the result of the acceleration of food prices by 8.0% overall due mainly to the increase of 9.8% in the prices of bread and cereals, 9.2% of those of meat, 9.1% of fish and seafood prices, and 13.5% of the prices of oils and fats," INS said.
The stats agency joined many other analysts in saying that the key forces behind this gloomy context are the effects of the Covid 19 pandemic and the war in Ukraine. "The 3.6% increase in the prices of imported products over the last twelve months, as well as those of local products by 3.8%, has roots in the negative impacts of Covid-19 and conflict between Russia and Ukraine. These factors have further contributed to the increase in the price of grains, oilseeds, raw materials, agricultural inputs, energy, construction materials, and sea freight on the international market," the Institute revealed.
However, the risk remains that inflation will exceed 4% in December. "Inflation would have already exploded if not for the stabilization of the pump prices of petroleum products,” the agency said.