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June records high inflation rate

July 20, 2018

By Alusine Sesay

Statistics Sierra Leone has in their monthly Consumer Price Indexes (CPI) stated that the consumer price inflation for the month of June 2018 was 16.57 percent, up from 16.02 percent in May 2018, adding that the consumer price inflation for the same period was 1.55 percent.

According to Statistics Sierra Leone, inflation of prices of food and non-alcoholic beverages increased from 18.73 percent in May to 19.65 percent in June, recording an increase of 0.92 percentage point.

A release from the institution stated that housing, water, electricity, gas and other fuels increased from 8.66 percent in May to 9.52 percent in June and that the inflation increased by 0.86 percentage point.

The release continued that health increased from 16.11 percent in May to 16.63 percent in June with 0.52 percentage increase point.

Also, alcoholic beverages and tobacco increased from 19.99 percent in May to 21.02 percent in June with an inflation rate increase of 1.03 percentage point.

“Furniture, Household Equipment and Household Maintenance inflation increased from 0.64 percent in May to 1.69 percent in June. The rate increased by 1.05 percentage point. Clothing and footwear inflation increased from 1.33 percent in May to 1.36 percent June. The rate increased by 0.03 percentage point. Restaurant and Hotels inflation increased from 1.54 percent in May to 2.02 percent in June. The rate increased by 0.48 percentage point,” the release noted.

According to the release, the national monthly CPI (2008=100) increased from 230.55 percent in May, 2018 to 234.13 percent in June, 2018 resulting in 1.55 percent inflation.

“Similarly, the monthly rates of inflation increased in all the regions. Western Area (1.41 per cent), Northern Region (1.68 per cent), Southern Region (1.54 per cent) and the Eastern Region (1.79 per cent) comprising two centres, Kenema (1.26 per cent) and Kono (2.31 per cent) during the same period.”

Also, according to the release, the national year-on-year inflation for June 2018 increased from 16.02 percent in May, 2018 to 16.57 percent in June 2018.

“Again, the year-on-year of inflation increased in the Eastern Region from 15.80  per cent in May, 2018  to 16.19  per cent in June, 2018, in North Region from 18.28  per cent to 19.06  per cent, in Western Area from 13.77 per cent to 14.31 per cent and in Southern Region from 18.68  per cent to 19.07  per cent.”

It  was observed that the Eastern Region and Western Area year-on-year inflation rates were below the annual national inflation, while the two other regions (North and South) annual inflation were above the year-on-year national inflation.

Statistics Sierra Leone noted that the Southern Region is now in the lead in the year-on-year inflation followed by the Northern Region.

“The monthly price inflation of 1.55 percent reflects a general increase in the price level in all the four regions which affected most of the components in the CPI basket. The general increase in the price level especially the food, clothing and footwear, alcoholic beverages, tobacco and narcotics and furniture, household equipment and household maintenance was due to the steady depreciation of the local currency as against the foreign currency especially the US Dollar.”