Progress in reducing inflation is more evident in advanced economies like the U.S., but it will take longer for countries in the Middle East and Sub-Saharan Africa, which continue to grapple with double-digit price increases, according to the International Monetary Fund’s chief economist.
Pierre-Olivier Gourinchas stated at a news conference on Tuesday that the risks of a U.S. recession have diminished, attributing the strong economic performance in the U.S. to improvements in productivity and labour supply, driven in part by an influx of immigrants, Reuters reported.
Inflation in Africa
In Africa, inflation has become a serious issue, with the cost of basic goods and services soaring in many countries. Over the past few years, essentials like food, fuel, and transportation have become way more expensive, making it tougher for people, especially those already struggling financially.
Business Insider Africa’s report on the top 10 African countries with the highest inflation rates in 2024 shows just how bad things are. Sudan leads the pack with a shocking 157.9% inflation, followed by Egypt at 35.8%, and Sierra Leone at 33.6%.
Food prices, in particular, have spiked, due to a mix of local problems and global disruptions. The World Bank’s Food Security Update shows that several African countries are still grappling with extremely high food inflation.
According to a Reuters poll, inflation is expected to ease in some major African economies next year, but Nigeria will remain an exception due to ongoing currency challenges with the naira.
For instance, Ghana’s inflation, which averaged 40.3% last year, is expected to drop to 18.7% this year and further fall to 12.1% by 2025. Kenya, on the other hand, is looking at relatively lower inflation compared to other countries in the region, with an average of 5.6% next year, down from 6.3% this year.
But in Nigeria, inflation is projected to rise to 29.1% this year, up from 24.5% last year, before slowing to 17.2% next year. Just last month, inflation in Nigeria hit 32.7%, making life harder in Africa’s most populous country and its fourth-largest economy.
