(Ecofin Agency) - Food and housing prices pushed overall inflation in the WAEMU above the 3% threshold, reaching 3.7% in April 2024.

UEMOA countries Niger, Burkina Faso and Benin recorded the highest inflation rates within the bloc in April 2024. Data from the BCEAO central bank show that these countries posted respective rates of 11%, 3.7% and 3.1% over the period, compared with 2.9% for Guinea-Bissau and just 0.9% for Mali.

These developments unfold amid ongoing tensions between Benin and Niger over border access and economic sanctions imposed by ECOWAS on Burkina Faso following a coup. Subsequently, trade and supply chains for essential goods have been disrupted, leading to shortages and price hikes, particularly affecting food items.

In contrast, Senegal and Togo observed a decrease in their inflation rates in April, while Côte d'Ivoire's rate remained stable during the same period.

Overall, WAEMU's inflation rate climbed to 3.7% in April 2024 from 2.9% in March 2024, largely driven by increased costs of food and housing. Despite the rising trend in inflation since January 2024, when the rate stood at 2.7%, the BCEAO's Monetary Policy Committee opted in March to maintain the main interest rate at 3.5%.

Looking forward, the BCEAO anticipates inflation to stabilize at 3.7% for May and June 2024. This forecast considers persistent price pressures on cereals, notably in Sahel countries where reduced agricultural output was observed during the 2023/2024 season.