In the 1st quarter of 2022, household final consumer prices increased by 4.4% year-on-year. On average
over the last twelve months, prices continued to rise in March 2022, rising by 2.9%; while the increase was only 2.3% in March 2021, 2.5% in January 2022 and 2.7% in February 2022. The main determinant of this inflationary surge is the acceleration of food prices by 6.0%, after 3.4% a year earlier, mainly due to the 6.8% surge in bread and cereal prices, 6.4% in meat prices, as well as 10.2% in oil and
fat prices. The 3.1% increase in the prices of imported products, as well as those of local products by 2.9%, is strongly explained both by the harmful effects of Covid-19 which has been raging since 2020 and by the conflict between Russia and Ukraine, which have further contributed to the increase in the prices of imported products on the international market, the costs of raw materials, agricultural inputs, energy, building materials, and sea freight. At the regional level, the CEMAC threshold of 3% was reached or crossed in six capitals, including 4.5% in Ebolowa, 4.4% in Bamenda, 4.3% in Maroua, 3.9% in Bertoua, 3.6% in Bafoussam, and 3.0% in Garoua. Despite the BEAC’s recent interventions on its key interest rate to slow down the overheating of the economy, the country remains very affected by global price increases and could still remain in this difficult socio-economic situation, if the conflict between Russia and Ukraine persists and there are additional sanctions against Russia. In addition, the dysfunctions caused by the Covid-19 pandemic and exacerbated by the conflict could further accelerate the inflation of imported and local products. The potential for inflation remains high. If the current pace of price increases is maintained, the inflation rate could cross the 3% mark in 2022, in the absence of strong additional measures, both comprehensive and targeted, to support businesses for a moderate product offer and households in order to safeguard their purchasing power, which has already been eroded by a high cumulative inflation of more than 9.2% between 2017 and 2021.
