The downward trend in inflation continued throughout the first half of 2024, with an inflation rate of 5.7%, down 2 points compared to the first half of 2023. Inflation averaged 5.7% annually at the end of June 2024. Food prices and transport costs have mainly contributed to this inflationary surge. The increase in food prices can be explained mainly by the increase in the prices of vegetables as well as bread and cereals. The increase in transport costs is largely due to the increase in the costs of road passenger transport, in particular due to the adjustment of fuel prices at the pump. On average over the last twelve months, the prices of local products recorded a more marked increase of 6.1% at the end of June 2024 compared to those of imported products, which rose by 4.5%. For the first half of 2024, inflation is the result of a combination of domestic and international factors. Thus: At the national level, the reduction of subsidies on hydrocarbon prices, in addition to security constraints, particularly in the North-West and South-West regions, and some localities in the Far North, have probably caused disruptions in production circuits and consequently increased transaction costs. In addition, adverse climatic shocks, marked by longer-than-usual dry seasons, combined with inefficient agricultural practices, may have reduced the supply of food commodities, contributing to higher food prices. Internationally, geopolitical tensions in the Middle East and Europe with the Russia-Ukraine conflict, the lingering repercussions of the COVID-19 pandemic, as well as fluctuations in the exchange rate between the FCFA and the US dollar (via the Euro) have also contributed to fuelling inflation. Changes in the prices of raw materials on international markets, such as oil and agricultural products, make imports more expensive, thus increasing the prices of imported goods. Nonetheless, efforts have been made globally to contain inflation, including by mitigating supply chain disruptions, reducing global commodity prices and transportation costs, as well as adopting restrictive monetary policies by many central banks. However, gradual monetary easing is already being observed in several countries.
