By: Thaimu Bai Sesay

Sierra Leone’s inflation rate dropped to 13.78 percent in December 2024, a decline of 1.63 percentage points from the 15.41 percent recorded in November, according to the latest Consumer Price Index (CPI) report released by Statistics Sierra Leone.

The report indicates a continued downward trend in inflation throughout the year, though price levels remain high.

Despite the overall decline in annual inflation, the report highlights a rise in monthly consumer price inflation, which climbed to 0.85 percent in December, up from 0.28 percent in November. This suggests that while long-term inflation pressures are easing, short-term fluctuations in prices persist.

A breakdown of the figures shows that several key sectors contributed to the inflation drop. The largest decrease was recorded in the housing, water, electricity, gas, and other fuels category, which saw a decline of 14.04 percentage points, bringing it down to 12.37 percent year-on-year. Furnishings, household equipment, and routine household maintenance fell by 6.55 percentage points to 11.58 percent. Clothing and footwear recorded a 2.27 percentage point drop to 13.84 percent, while the health sector declined by 2.40 percentage points to 13.35 percent.

Regionally, four out of five regions recorded lower inflation rates in December. The Eastern region dropped from 16.52 percent in November to 14.70 percent, the Northern region fell from 17.37 percent to 13.98 percent, and the Southern region declined from 17.66 percent to 14.62 percent. The Western region also recorded a drop from 14.82 percent to 13.61 percent. However, the North-West region saw a slight increase, rising from 12.19 percent in November to 12.31 percent in December.

The report further notes that food inflation, a major driver of overall price increases, has softened significantly over the past year. While this is a positive development, inflation remains a pressing economic concern, affecting consumer purchasing power, business costs, and government policy decisions.

The CPI is a key indicator used to measure the average price level of selected goods and services in Sierra Leone. The country’s inflation rates are calculated using the Modified Laspeyres formula, with price data collected from markets in Freetown and major regional towns.

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